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Thanks for that 7mmsaum, being such a nasty day up here I have done some research and its quite common for shimanos, I checked the drag washer assembly which was fine and as it came from the factory....

seem to have a problem with a 2 year old shimano bait runner reel, as I am reeling the line in with a fish on the drag starts to tighten up, you can actually see it happening, the drag starts to work...