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Dheitman62,
Welcome to the forum. As you are already finding out, there are a lot of guys here who are willing to help you get your motor running. I hope you’ll find the help and information valuable. I know in my case the help I received eventually led me into this hobby and I eventually joined the AOMCI. I hope that will be the case with you.
I have a lot of correspondence from a gentleman named Lloyd who is the guru on these motors. According to him, rarely are these coils, condensers and points bad. They should still be tested, but the odds are in your favor that they are still good. It was a good find on the bakelite insulator. I would still polish the points shiny and see if you have spark. That chip may or may not be an issue, but it won’t affect both sides of the motor. Be careful with the small o-ring insulators as stated above. Mine were deteriorated, but I took the thing to the hardware store and found a strip of wire that would just fit, and bought an inch of it. Then I cut the insulation cover to the correct size and used that as a replacement for the O-rings.
The carburetor will need a rebuild. You can find a lot of information here: http://www.pochefamily.org/outboard/
As far as the grease/oil question goes, my TD-20 also has the word ‘grease’ written on it. It’s a 1948, so I’m not sure why some of the motors have it stamped and others didn’t. I knew that I had the same question and reviewed my correspondence with Lloyd. His recommendation was to use 90wt hypoid oil and he specifically recommended against using grease in my motor. I have not run my TD-20 much, but I have used oil without issue.
Well again, welcome to the forum and good luck with your TD-20.