I completely forgot to explain where I got it from. The razor in question is from Straight Razor Designs, and it was my understanding that every razor from there would be honed by Lynn Abrams. I do not question their ability nor the razor's shave readiness. After stropping, the razor is much better. I just was hoping to get a razor out of the box that would shave better than anything I could have done. Having to strop it may be normal, but it messed up my "target" because now I will always wonder if I am stropping properly.
The oil was not exactly dry or hardened. It just was some kind of gel in a few spots and so it looked like pits at first, until I realized it was just some gel/oil substance.
In all reality, I am pleased with the purchase and the honing. I just want to make sure that I have a good reference/target for honing, but also so I know what a good shave should be like.
Thanks for all the replies!