The original VS drag washers were made out of a tan material they called "Rulon". They basically sucked. I did what Jeff does--installed the Penn HT-100s and used some sort of drag lube on them.
The correct washer size is part # 6-60. Same washers used in a number of Penn reels, including the Squidder, 704 and 706, and the 6500-850 SS reels.
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