it probably is down
I have an '85 M25 with a swing keel. The keel is all of the way down with a few wraps of cable around the winch. This is for a reason. In order for a winch to safely function, the cable must be firmley attached. Most cables have a simple fitting pressed onto the end of the cable. This fitting is then attached to the winch drum with a bolt. without a few turns of cable around the winch drum, the fitting would more than likely pull off of the end of the cable when it starts to take a load. With a few turns of cable around the drum, the cable takes most of the load on itself as it tightens around the drum. I have an 8000 lb winch on my jeep. The directions with the winch stated specifically not to operate it with less than three turns of cable around the drum. Lower your keel and take a look, I'll bet your keel is all of the way down. In fact, it may lower past the lock hole and need to be drawn back somewhat for the lockbolt to be put in. A word about this, according to Bill at MacGregor, if you constantly sail with tension on the cable, you may cause excessive wear where the cable passes through the hull. Once the lock is in, spin the winch a couple of revolutions to slacken the cable. Happy sailing.