Looks like you've got about 5 threads showing on the non-freewheel side and 7 on the freewheel side. The non-freewheel side is too long, but the freewheel side could be longer because of the extra width added to the dropout by the deraulleur hanger. I'd suggest when you replace the axle you set the spacing beyond the lock nut on the non-freewheel side, so the axle end sits about in the middle of the dropout thickness, or at least 1/3 of the way in from the outer edge. Then the freewheel side will fall where it wants to fall, but the thickness of dropout + hanger will give you lots of wiggle room. Make sure each side is recessed about 2 mm.
Oil is good, grease is better.
2007 Peter Mooney w/S&S couplers/Terry Butterfly
1993 Bridgestone MB-3/Avocet O2 Air 40W
1980 Columbus Frame with 1970 Campy parts
1954 Raleigh 3-speed/Brooks B72