These tools have panetry gearboxs to give maximum torque foe lightweight gearing. A common problem with the older DeWalt drills was the gear selector legs coming adrift. This is (potentially) an easy fix. First of all, the obvious stuff. Remove the battery and press the trigger to release any static/stored power. Undo all the screws and seperate the two halves. Try to keep all the internals in the back half like this... http://lib.store.yahoo.net/lib/mendingshed/DW958mainimage1.gif
Now check the metal legs coming down from the gear selector slide. They should be sitting through the sides of the gearbox, and located into the sides of a ring gear. They used to pop out of this gear which would stop it being pushed fully into position.
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Sounds like a bad transmission to me. is it while it is only in low speed or high speed? what if you switch the clutch ring from 1 to drill? does it still do it then?
does the motor still spin when the chuck stops?
I think your drill is stuck between either the speeds or the selector that has the numbers and the picture of a drill bit. Try switching from speed 1 and 2
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