Alan, this is a good site for problem solving amomgst other things. Theres a whole section dedicated to Penn reels.

On re-reading your issue Alan, I did a service on a Penn 70VS 2speed recently for a mate who I dont think has ever serviced this reel since buying it, was a real challenge taking it apart due to a lot of corrosion. I replaced both sets of disc clutch springs (4) at the time I didnt realise that each pair are of a different size, one set is about 1.2mm and the other about 2mm from memory. When testing drag setting I found that only 2 clicks from free spool and I had drag preesure I would usually have at strike, this is how I found out that the clutch springs are different thickness. I have left the thicker set infor now for my mate to try but if he has any drag issues I told him I will replace one set with the old thinner ones as they are not cheap to buy as you pay for them indivdiually not as a pair.

Perhaps this could be your issue??

Not sure if this is of any help

Right, I get it. It is as the reply posts state - worn drag washers or Bellville (clutch) washers. I replaced both - individually and no change.

It could be a combo of both. Maybe I am overthinking it. But I have done something similar  - by adding an old bellvile washer as a spacer - and as clutch washer. 2 for the price of one. Seems to have fixed the issue. These reels are old and done a LOT of work. Can't complain at all really. I still like them. A LOT.

Alan