Wow Balloonoob those parts look rough. Hope you got it all sorted out.
GRANDPAS_RIDE, if you get grease on the discs, they will (in my opinion anyway) drag too much. In the 70s I ran marvel mystery oil in these, and just tore them down a lot to relubricate. I don't really recommend that now.
Not long ago I redid my 41 Schwinn and I packed the bearings with synthetic grease and oiled up the discs with the lightest synthetic motor oil the auto parts store had. It works great and spins like crazy. The Schwinn has bronze discs in it like Baloonoob's picture except not shot.
I am working on a Korean war era Huffy now, and it has steel discs in it. I did the same thing. It is making a bunch of noise it shouldn't, so I am hesitant to recommend that if you have steel discs, at least until I figure out what is wrong.