I have a fellowes too. The biggest cause of paper jams is having a basket too small and not emptying it out before it gets to the top. I usually try to get a large pail since the top is adjustable and I can put a plastic bag inside. I think using the baby oil is a good idea on the paper to oil the machine blades every so often. I make sure there are no staples or thin plastic openings on the envelopes.
I have had this shredder a long time but it does the job. The newer ones are awesome and expensive. Will keep an eye out for a good sale to buy a new one.
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Sueanne