Oh, and interestingly, the "sensor" has no "tooth" (which I would expect to see from any transducer type device. The ABS sensor I extracted was a flat-ended cylinder; no protrusion, no tooth. Looked reminiscent of the -ve end of an AA battery with the wrapper off and just the metal case exposed.
But as I have never seen one before I know no different /better.
The teeth are on the shaft. If you look down the hole you should see them. As each tooth passes by the sensor picks it up. That's why it has to be so close. Don't have RAVE to hand but if you look in there it will tell you what sort of grease. The grease seems to help it stay put so I'd find the right sort. Also, the springy collet thing the sensor sits in should be tight so it doesn't move.