When you rotate that "Wheel" it pushes on an inner rod which disengages the "right side" planetary gears. Sometimes if you do not have tension on the Drum, then you can't re-engage the motor...
I would have about 6 feet of cable out... and turn the "Wheel" to the engage mode. Then I would pull outward on the cable to put tension on the Drum and press the out button to activate the motor... it SHOULD catch... If not... that winch might be done..
Just don't be putting your hand / fingers on the drum when engaging

hence my recommendation to press the Out button....
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CraZy Steve
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2007 Grizzly 450 4x4
- Warn 2.5ci Winch w/20 foot remote
- GYTR Deluxe Rear Rack Extention
- GYTR Skids (Belly, Rear, Front A-Arm)
- CSS (CraZySteve Skids) Footwell Rock-rails
- CSS Front CV Boot Extenders (attached to GYTR A-Arm Skids)
- Garmin GPSMap 60Cx w/R.A.M. Mount W/Topo 2008 USA Maps
- Snorkle for front of Belt Drive