CityBoy - If you want to get more drag out of your reel you can take it to SquidCo and have them install CarbonTex Drags and or keep your present drag and just put spacers in the reel. I don't have a clue how to do it yourself, but it's only 30 bucks for parts and labor there (usually takes less than a week).
I had them do this to a Newell I burned out last summer and the drag is not only smoother, but it now has significantly more strength. 12#s drag isn't bad for 40# line anyway, but if you ever want to use 60# on that reel, which I think it's rated to (for long range trip etc), 12#s might be a little light.
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