I did a non-klr specific search about shock oil, and apparently there is "shock oil" that is different than fork oil that must be used. My local M/C place didn't have any, so I gotta find a place online.
So now I just need to know if the 08 shock takes the same amount of fluid as the previous gen, 130cc's.
I think oil coming out was what should have happened, steps 24-25 here -
When I initially pressed the valve only gas came out. I played with it a bit, compressed it, and hit it again, thats when some gas followed by oil came out.
The instructions have you add the oil during assembly into the shock tube, but I think it should work adding it thru the air valve. I'll put some alcohol in and work the shock, flush out all the old oil, then hook a vacuum up to the air valve, working the shock in and out to get all the alcohol out. then add the new oil, work the shock to get it thru everything, then pick up the instructions at step 24.