The lubricator oil inlet should enter the slide valve cavity in the steam chest so that the slide valve is lubricated. Oil will then be carried thru with the steam to lubricate the reverser valve and then the piston rings. Oil should not enter the steam chest where it could drain back into the boiler as it will cause foaming inside of the bolier.
An air line for testing can be anywhere on the boiler. Drain plug, steam outlet, etc
Paul