Gearmatic 119 stuck winching in wont release

[Putnamqdm@yahoo]

TJ 240 with Gearmatic 119 wont free spool handle stiff not much throw to release. Only moves to about 10:00 release and 2:00 winch.
Continually Winching in and wont stop unless  PTO disengaged. tried bleeding without success. Suggestions please.

So far disassembled Brakes and Master control unit works fine, Hoses were lousy so replaced, The Brake slave cylinder was completely rusted solid wont move. All brake hardware is removed and disconnected line to the clutch yet the drum still turns when pto is engaged so thinking the clutch is stuck I removed clutch slave cylinder push rod and still drum turns. 
Only thing I cant get off is the secondary brake band 
clutch still attached so if the clutch is rusted stuck to drum could this be the problem?