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Hello Lawn mower forum. I am Tiny Tinkerer . I am from the generation of rebuild, rebuild, rebuild. I like to keep things going as long as possible. So, now I have a Sears Mastercraft electric lawn mower model # C935. It is almost as old as I am and replacement parts are not available. Luckily I don't think I need any parts, however, when I turned it on last time, it did start to smoke and it sounds like metal rubbing on metal (slightly). I opened it up and it appears that the wrong lubricant was used in the gear box but I am not sure what lubricant to use. Any suggestions would be greatly appreciated.

Most likely it was the correct grease. Grease will basically dry out over time and become non flowable. More technical than that but it stiffens due to loss of the lower viscosity properties.

Welcome to the forum. That's a nice age for a mower!
You should find plenty of good advice around here.

The smoke in not from here, I think its coming from the electric parts, is the motor in good condition, clean and oiled??

Welcome Aboard !!

Take the motor to an electrical motor shop. See if they can rewind the motor for you. They should at least check it out and tell you if the windings are shorting.

I use a grease gun and a LocknLube coupler for $50. However, the LockNLube was worth it to me. Very simple to attach and remove and kept the grease on the zerks and off of everything else!