I use 505 basting spray (the only type I will use, doesn't gum up the needle, etc.). Also have you checked out any of the blogs or info from Leah Day? She does all of her fmq on a domestic machine, she has a lot of great free info, here is a link to her home page:
http://www.daystyledesigns.com/
Regards,
Kif
PS: She has several blog posts where she discusses why she doesn't have a long arm, and doesn't want one...
http://www.daystyledesigns.com/faq.htm#why