i keep mine reeled in on freespool but i have the daystar isolator and fairlead license plate mount on mine. had to modify isolator a bit to be able to work with plate mount but i think it looks good. you can kind of see it here.

 

Mine is just on my tow hook. Engaged. Benefit to free spool?

 

I have it spooled tight (used my half ton as the anchor while spooling). I wanna say I read in Smittybilt's instructions that once its spooled to leave it on free spool to avoid wearing out the brake. I keep an eye on it so if it does decide to unwind or loosen up I can fix it quick but no issues yet.

 

I keep mine on the D-ring. Easier than trying to winch in exactly where you need to stop on the fairlead otherwise.