So no matter if my drag is tight or not, you can pull line off the reel (it spins freely). This is really annoying as I put my hook in the hook saver and then the line falls slack due to no drag control. Anyone ever had this problem before? Any ideas on how to fix it?

Look on the back of the reel and see if theres a little button that slides up and down.One of mines got that and if its in the wrong position it free spools.

I know about that little switch below the reel, and it does the same thing (if not more) even after switching it back and forth. If it helps diagnose the problem, I did slam the rod and accompanying reel on the pavement one day after losing a fish. A bad move on my part, and I regret it. I am just trying to figure out what I broke and if I can easily fix it. It is a nice abu garcia 2500 slatwater reel that doubles as my inshore rod when not chasing bass. I would hate to lose it.