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					Originally Posted by Quadcammer  You seemingly have no clue what you're talking about
 
 
 Scroll down to the next pic.
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You guys obviously didn't see the pic where the pully was sheared clean off the spool? I am fully aware the pully is a clutch type. 
And where would "red dust" come from? Other than a rusted/worn bearing/surface? That pully is NOT normal. Sorry.
As mentioned, the pully is replaceable with a special tool. If there are no further signs of corrosion or otherwise, it should be fine. (though thstone's advice is spot on)