Yes, grind it just as if you were rolling a joint. The finer it is the easier it vapes completely. keep in mind that when you are done vaping you will have left over matter, mine is usually dark brown and has the feel of ground coffee.
As for the oil. I am talking Rick Simpsons oil. To break it down to the simplest of terms and steps:
1. acquire 1 pound of "quality" buds. (Rick suggest high THC indicas)
2. acquire at least a gallon and possibly more of a solvent. Rick uses some things that I wouldn't but ultra high proof alchohol works as well.
3.mix solvent and ground buds and mash and mix until all ground matter is completely soaked and mixed well with the solvent.
4. drain all liquid into a separate container and repeat the process with fresh solvent.
5. drain all liquid into container and reclaim remaining solvent in plant matter.
6. continuously heat the solvent/oil mixture in a rice steamer until all solvent has cooked off and retain resulting oil.
The full instructions and all amplifying information can be seen at Ricks website
http://phoenixtears.ca/.
Do the research and read the book if possible.