Well last Saturday I was in the middle of nowhere WV and a buddy of mine got stuck on a log and asked me to pull him over.
I switched the winch to freespool and felt a pop. Well it would not lock and I had to finish the day with 8 feet of line wraped around my front rack.
I called WARN this morning @800-543-9267 and the guy I talked to will be sending out a new assembly to correct the problem. I will basicly get the entire left side of the winch as a replacment.

The winch clutch bar has ramps and if you turn the selector to free spool too hard you can jump the ramps and lock yourself out. (it looks like a plate with cotter pins on either side, Part #34 on the scematic)
I didnt take it apart yet but I was told it is made of plastic and once it does it there is a high probability of it happeneing again.

Funny thing is I dont think I turned it too hard?
I guess I will just go real easy from now on.

I am just glad that this will be covered under the limited lifetime warrinty.
Thanks WARN
I am supposed to get the new part on 9/6 so if there is a problem I will report back. I expect it will be an easy fix once I have the replacement.