Pretty much everyone here will tell you not to use WD-40 and I agree. It's not really meant to be a "lubricant." Use a light oil or something like Tri-Flo which has Teflon in it.
Look for any place that the cross shaft for that lever passes through a bracket or a bushing and apply a small amount of oil there. Also look to see if any brackets that the shaft passes through are loose and may be causing binding. If there are any "collars" that are used to adjust "play" in the cross shaft (I used to have these on a Marrs guitar) they may need to be adjusted to allow more play.
Forgot to ask: Is the E>Eb change not coming back to it's correct pitch? (ie: flat) If it is coming back to correct pitch then it's just an adjustment to the angle of the lever, not a lubrication issue.
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[This message was edited by Mark Herrick on 24 February 2006 at 05:20 PM.]
[This message was edited by Mark Herrick on 24 February 2006 at 05:21 PM.]