Major Changes
My winch is 6 month old (purchased brand new).
When pulling cable the cable spool (drum) would begin vibrating and causing much resistance.
I took the entire mechanism apart... the drum does not spin on bearings, but rather just two bushings (they were quiet dry by the way). The only bearings are on the ends of the axle and they provide roll in the horizontal direction, not perpendicular to the axle. There was slight wear on one bushing which allowed for some axle play.
I live a little past the far end of nowhere, and going without the winch for weeks to a month plus is not an option. There is almost 4 feet of snow pack and frozen trails for about 6 more weeks. After that you can imagine how wet and soft it becomes.
I took the drum to a local machine shop and had a replacement bushing made. A big thank you to my friend whom had the part installed within an hour of me showing up. Some new grease and a bit of reassembly and the winch was back up and running. The halting vibrations are gone. The pull is a little stiff, and time will tell if that is due to 1) cold grease, 2) too tight of a tolerance on the bushing, 3) poor adjustments on my part.
Take home messages... I am a little surprised that the drum does not turn on something more fluid than bushing... I love the winch, and the reports I have heard about its quality are true, so I am much perplexed at why a brand new one would become non-functional so quickly... I am caught as I would like to take advantage of the famous farmi warranty, but to do so would be quite costly due to delays.