Installed new Warn M8000. The winch powers in and out fine. However, won't free spool. Lever will not go back past 120 degrees. Warn Customer Service got back quickly suggesting the brake might be binding. They recommended loosening mounting bolts. If that did not work loosen the silver tube bars going the length of the drum. Tried both individually and together. No difference.

I will try Warn again in the morning but thought some winch veterans out there might have some answers so I could get it fixed tonight. Thanks

 

Found a fix!

Took winch out of the Jeep. Loosened tie rods (silver bars running length of drum) stood the winch on it's end, clutch end up, tapped the clutch end with a rubber mallet semi-gently 10 or so times and the gears fell into place, the brake released or whatever supposed to happen in there happened. Free spools perfectly now.

 

My Smitybilt is the same... not looking forward to taking it out, so I might try what you did the first time around and hopefully that'll work.