Oh, yeah. Chainfires are always a problem. From what I have been able to find, the oldtimers used about any grease they had on hand. I usually use either petroleum jelly or shortening. I saw one guy who used beeswax. That one was a mess to clean up.
I have to admit that I have some trouble putting your description of performance and what I have seen those guns do in gel, wood, and phone books.
I can't ID the gun in the photo of your ancestor.