It should have some play in it, now you've got me a bit confussed lol.
I will ahve to look at mine, and sadly mine is out on a project for the indeffinate future.
My other car (Datsun) you can pull it out as far as you want....at the risk of not getting it back in.
Has the cable been giving you any problems?
Why do you feel you need to grease it?
MY only broke as I put a sharp angle in the line after taking the cluster out...then I had to replace it lol