See this thread for a couple of pictures of the string motor on a 334 Dispatch station. It is not identical to the setup on a 464 Saw Mill, but it is close. The attachment point for the tension spring is different. The string is blurry because the motor was running when I took the picture.
I recommend against any lubrication of the pulley or string. They need to be clean and dry. If you replace the line, it needs to be unwaxed.
It might also help to read the original Lionel factory service manual pages on the 464
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