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Yep, it's the spring, I tried to fish it out, but it didn't want to...not sure how to :)
Elastomer looks yellow brown not the the extent that it's more brown/black...that's usually a sign it's gone to a better place.
(I may get a fresh kit from the USA anyway at some time, there are some for low prices, for when it inevitable goes tits-up as everything has an end, bar a sausage which has two)
But I sorta want to put it together and cycle it now! Cavehill on Belfast has nice trails including some that are suitable for n00bs. It's steep, but go all the way up and you can see the whole of Belfast. Well, if it's not raining cos island of Ireland eh...
JWestland
Is that blue bit in picture 2 the spring? Might be worth fishing it out and checking it.
Telescope looks good, much grease, wow.