Well I finally got around to dismantling my focuser and re-greasing it. The stuff in it was glue. It kept sticking my fingers together, had to use Kero to get rid of the stuff.
After re-greasing I can now focus much smoother. I do not have to do the allen screws up so much to get rid of the slop.
It is still not perfect, and it probably never will be, but it is better than it was and will do me for now.
The next thing is to try some thicker teflon pads than what is in there, this should almost eliminate the slop altogether.
It is a Skywatcher, but I think they all come out of the same factory anyway. Perhaps this stuff is a by-product of something else they manufacture and they thought hey why not use this as grease?
