My '96 583 is really hard to pull too, glad it starts on the first or second pull. I'll be looking for the newer larger diameter metal one soon.
Here is a link that shows two sources on how the rotary valve gets lubricated. It shows a marine engine, but, the rotary valve looks just like the one on my 583 and my 500.
It looks like it gets lubricated when the oil injectors inject their oil.
Another source, if your burning too much oil, is an angular tube, item 10 on the quinnsmarina link, that comes from a small oil tank. Looks like it oils the main bearings in the engine. If the oil seal is bad, it could also oil the rotary valve.
http://www.quinnsmarina.ca/seadoopar...otaryvalve.htm