As a kid in high school, my SME III tonearm was my most prized audiophile possession next to my Magneplanar MG-Is.
I thought it was hypnotically beautiful and very well made.
At that time, my audio mentor suggested a Grado Signature cartridge which worked well and had midrange to die for.
I think I also had a Grace F9E, but used that more on a later turntable, my Yamaha PX-2.
Not sure about dampling fluid, but I think Flat Earth Audio may have some dealings in SME products.
Good luck and have fun.