The retrieve on my reel grinds only in one spot of the retrieve. I had the reel replaced 3 times and all of them have done the same things. I was not expecting a problem like this considering the fact that I spent almost $300 on the thing. Should I return it, exchange it again, or try to fix it?

That's certainly odd. I own 4 of these reels have used them heavily since they were released. None of which have given me any issues. That's odd that you've gotten 3 straight duds...

That micro gear requires a really heavy grease and Shimano recommends their ACE2 drag grease.  Cal's is the same thing.  

I tried this. It was quite smooth for a very short time now its back to geary.......... Sending it to shimano tomorrow

I’ve been playing with it all day and I noticed the grinding(in one spot) seems to get worse if I tighten the tension knob. It’s driving me nuts!

4 hours ago, Johnpenguin said:

I’ve been playing with it all day and I noticed the grinding(in one spot) seems to get worse if I tighten the tension knob. It’s driving me nuts!

Just a shot in the dark but if it's getting worse when you tighten the tension knob, the spool shaft could be bent.