Sounds as though its out of adjustment. Should have a little free play, but when pulled down should be no drag. Mine every once in awhile I can feel what feels like a slight creep. If it has that creep it is partially engaged and dragging, which will wear it out and glaze it. As for oil level, my XCT dont particularly like being full to very top of fill line. Will push some mist or what ever out breather and make a mess. My last 2 bikes have been same way, so I leave at about mid way between low and full.
2013 XCT added Jan 2015
pull back bars, passenger arm rests, HID Low beam, Silverstar Ultra headlight high beam,Drag Specialties Pillow Top seat with driver backrest. Glasspack mod Mufflers.
2009 Royal Star Venture-Traded Jan 2016
Trailers are for when it's broke aint it?