Engine oil

On your two stroke, Yes its only to lube the cylinder and piston. No oil on the bottom end.
Your transmission has oil but thats completly seperate.
 
On your two stroke, Yes its only to lube the cylinder and piston. No oil on the bottom end.
Your transmission has oil but thats completly seperate.
Correct. and you need to run 2stroke oil in the top end, gear or regular motor oil for the bottom end.

A 4 stroke works buy pumping the oil through the whole system trans, sleeve, cams and springs. the rings on the piston keep the oil in the sleeve and the valve seals keep the oil from leaking past the valves. Thats why when a 4poke starts burning oil it needs a rebuild.
 
Motor Oil (10W-30) or whatever you use, goes in the Transmission which is that little screw by the kick starter. 2 Stroke oil goes in the tank under the seat, or if you don't have the tank, you have the block off kit. Which means you have to premix your gas. The gas and oil you premix with oils your crank and piston. Your transmission oil (the 10w-30) oils the transmission and thats it.

Now get out and ride!