* Should the oil pump be primed?
Yes, but I don't know how to do what your shop folks are suggesting on this engine. All you can do is spin the engine with the starter - BUT - the oil pump WILL NOT prime just by cranking the engine. You can pressure oil it, but that's not easy if you aren't set up for it. There's a trick that Kevin suggested a while back that works very well - see below.
* Should I spray some lubricant down the spark plug holes for the first start?
No, it's not necessary - there should be enough residual lubrication from installing the rings.
* Should the fuel rail and pipes be primed?
No, it's not necessary.
* and then the always debatable starting procedure
Here's the way I do it:
1) Remove the spark plugs.
2) Remove the coil wire.
3) Disconnect the injector harness plug at the firewall.
4) Install a mechanical oil gauge in place of the oil pressure sender at the oil filter adapter. Use a length of tubing and a remote mount so the engine can be monitored while cranking. I usually attach the gauge to the front of the grille with a couple of plastic cable tie wraps.
5) Loosen the oil filter a couple of turns.
6) Unplug the CCV hose from the air intake duct.
7) Apply about 4psi regulated air pressure from a compressor through the CCV hose into the valve cover.
8) Crank the engine until oil gushes from the loosened oil filter..... then stop cranking, tighten the oil filter and clean up the mess. The pump is now primed.
9) Remove the air attachment and reinstall the CCV hose.
10) Install the spark plugs.
11) Connect the injector harness.
12) Connect the coil wire.
13) Start the engine and run at 1500-2000rpms for 20 minutes or until it's fully warm and all lifter noise is gone. The lifters will make a bit of clatter until they purge all air and pump up tight.
14) Oil pressure may spike over 100psi on initial start, but should quickly settle down to about 40-50psi. Watch the oil pressure and coolant temperature carefully during this period.
15) Once fully warm and sounding ok, stop the engine, drain the oil while hot, change the filter and replace the oil.
15) Drain the radiator and replace the coolant.
16) Connect a timing light, restart the engine and adjust the ignition timing.
17) Time for a break-in drive....... let us know when you get to that point and someone will give you a procedure.
Frank