The guy at the local auto store said gear oil. Would he be right? Sorry if this question was asked before, pretty silly I know but I searched and didnt find an answer and don't have access to the FSM right now. Also, there's quite a bit of grease in the rack boots, am I going to need to replace seals or is this normal? Sorry for such noobish questions.

White Lithium or General Purpose is fine: http://atlanticz.ca/zclub/techtips/steering/racktension/

There are no seals on the rack. The dust boots perform this function. Grease in the boots is likely build-up from normal servicing. There is a filler plug near the pinion shaft. Remove this and install a Zerk fitting. Use a grease gun to pump in some new grease.

Thanks for the feedback guys. So pump white lithium grease through the filler plug with a zerk fitting and a grease gun, got it! How will i know when its full? Do I clean up the grease on the boot covered area of the rack when replacing the boots also? And no need to grease the new boots right?

I wouldn't use white lithium. It dries out and gets cakey. I'd use regular chassis grease. As to how much, just make it a part of the regular lube you do with every oil change. Just a couple pumps is fine, the grease doesn't escape and doesn't get used up.

I will take your advice Mr. Mortensen. TY.

FSM says general purpose so that should be fine.

I have noticed the white lithium grease in spray cans often dries out. Sometimes it is seen on engine parts and door hinges. This is most likely due to the aerosol additives and thinning agents.

However, the stuff that comes in tubs does not seem to dry out at all. I have a tub from the '80's that I used to pack bottom bracket and wheel bearings on my old Marinoni racing bike and none of the grease on the inside or on the outside has dried.

White lithium grease has been used for many years in bike bearings. Maybe the formula for additives varies or maybe it is not good in heated applications because the additives may boil off. I have even seen it in the boots of wheel cylinders w/o problems so that goes against my guess.