just a warn2000 winch and it has 2 positions - "freespool" and "engaged", the question is this...the winch only works 'out' and 'in' while set to freespool and while in engaged it only works 'out' not 'in'. Is this right ?

 

Your winch should not engage at all when in the freespool position. You will be able to hear the motor turn, but the spool should not turn. This position is simply for pulling out line fast and not having to use the switch and winch motor to get to whatever you are trying to hook to. In the engage position, your winch should both pull cable in and let cable out, depending on which direction you have the switch turned. If this is not how your winch is working, then check all of your connections and wire routing, sounds like maybe something is crossed.

 

Free spool is basically a neutral for the winch. It allows you to remove cable from the winch quicker and with less power drain from the battery.