I just got a new Electra Townie 8i and notice that the chain appears clean and silvery. Is it supposed to be lubricated and if so, what is recommended lubrication?
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The chain is a KMC Rustbuster - it has a special coating on the plates and waterproof grease inside the 'bushing-less' bits. You don't have to do anything to it until the rust-proof coating wears off from the inside of the plates. Therefore, don't do anything to the chain - applying 'WD40' style lubes will only displace the grease by emulsifying it. Wait until this time next year and, if the chain appears 'orange rust coloured' after a ride in the rain, pop some medium flavour oil on it, sparingly.
Maybe Electra should have some words in the instruction manual as they have included a rather special chain that you are lucky to own.