Originally Posted by fredaevans
Here's your problem, and it isn't the reel. You have your fly line (and perhaps the backing) wrapped on/in (for a lack of a better term) 'lumps.' Parts are tight, some loose. As you pull off the line the 'effect' you get is just as you described.
Tie the fly line off and take a long walk, stretch and reel back on minding the backing/line go on in level (back and forth) strips.
Edit: when the FL is off the reel, push down on the backing with your finger tip. 'Sponginess?' Keep walking ... you're not done yet.
YES! Good answer. This might be the problem. I did load the backing and line myself and guess what.... its the first time I did it myself! I tried to be careful and wind the backing and line evenly but perhaps I still didn't do a good job. I'll take it to a shop and have them rewind the line to see what that does.