Yeah, buddy! Coconut oil would work great. I use a little wood conditioning stuff I got with one of my other wooden vaporizers, just a little smear and it goes in another. Mine is not very tight. My inception stem has some imperfections in it, so maybe it's a little thinner than yours? Glass does vary.
Anyway, isn't it awesome using the stem with it? I can feel the vapor coming, which gives me great feedback, but it's definitely not harsh or hot. It's really easy to clean too. Some hot water in the sink and I use a little dish soap. Every couple days the stem is shiny like new.
I also noticed that my first hit is just flavor, then the vapor ramps right up. I remember O'Connell mentioning that it seems to pick up big time when the restrictor disk or whatever it's called heats up and it seems to be true in my experience as well.
Happy you like it and I'm happy to have another person in the forums using the same setup as me.
What wood did you choose? Did you get laser engraving? Share a picture! Does yours have some wiggle with the two halves like mine?