There's nothing wrong with the sail. The sail stop is pretty high on the mast, and that prevents the slugs from getting down to the boom. The bottom slug (below the 1st reef cringle) is on a jack line, so it loosens up when reefed, allowing the sail to flake around the boom. The remaining slugs do not have jack lines, so they hit the sail stop and cannot fall to the boom. To use the 2nd reef I either need to modify the sail to add another jack line, or remove the sail stop (so slugs can drop to the boom) and put a gate in the slot to keep the slugs from falling out of the slot. This is a common mod on Catalina 250s, and the gates are available from CatalinaDirect.
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Formerly posted as "RhythmDoctor"
1998 Catalina 250WK Take Five (at Anchorage Marina, Essington, on the Delaware River)
1991 15' Trophy (Lake Wallenpaupack)
1985 14' Phantom (Lake Wallenpaupack)