You don't need to lube the splines but I would put a dab of grease on the pilot bearing just to ease the rotation of the input shaft.
I never bench bleed my master cylinder and it's always worked fine for me in my Ranger. Others say that it's neccessary however, I've just never had to do it.
This is how I bleed mine:
1. Run a rubber hose that fits tightly onto the bleeder screw of the slave cylinder up to the reservoir. Use duct tape or whatever other method you choose to ensure the hose stays in the reservoir of fluid.
2. Be sure your reservoir does not run dry at all costs!
3. Have an assistant pump the pedal while you are under the truck with the bleeder screw "OPEN". At first, pump about 10 times and have the assistant hold the pedal down while you tighten the bleeder. Work up to about 25-30 pumps, while the bleeder is open, and then while the pedal is depressed tighten the bleeder.
4. After doing this process a few times you should be compltely bled.
This has always worked for me. I've tried bench bleeding. I've tried pumping the pedal and holding it down, then opening and closing the bleeder. Nothing has worked for me as good as this method has. This also works on brakes too!
Allen