Wow, very cool! If I did my math right, and assuming the 5/8" and 1/2" are outside diameters, you have five-thousandths of an inch clearance between the inner and outer rods, total, which translates to 0.0025" around the circumference of the inner rod. So, a couple of thoughts:
1. With such tight clearances, if the rod gets ANY bend in it at all, it will start to bind up.
2. Try a lubricant with Teflon. One of the nice properties of Teflon is that its coefficient of friction decreases as the pressure on the sliding surfaces increases. (I think I have that right).
Keep the photos coming!