Since you say you've greased them & they don't have roller bearings they may not turn very freely. You just put light machine oil on the pawls right? Are there burrs inside the drum, on the spindle sleeve?
Best info I've found on older Lewmars is at Lewmar Winch Schematics
this is what I'm guessing you have http://www.pyacht.com/graphics/Lew_WG_67.gif
Have to admit I was surprised that they don't have roller bearings. The schematic I looked at though doesn't show any.....