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Lube will do minimal for wood, paraffin/bar soap if anything but the wood is so wet and soft I doubt you'll see much effect out of it.

For the money I'll second the hole hawg! Rated for 1 1/2" bit in wood, lots of power, cheaper than the Stihl and lighter! http://www.milwaukeetool.com/drills/hole-hawgs If you have power close by at least. I think the Dewalt will do it, but it's going to be hard on the batteries and the tool! If...