I have a furller that doesn't work good. I have taken it apart and it is in need of new ball bearings. It doesn't spin in the housing freely it is binding somewhere. I assume it should rotate in the housing easily. Also, is there a spring in the furller that retracts the jib onto the forestay? or do you retract the jib manually?

It looks like the C clip that holds the axle in the housing is binding on the housing.

Any suggestions?

Wouldn't have thought it had bearings or would bind.
You furl it manually supplied is a photo of a 2:1 if you want to have thicker cord for hands and faster furling. The unseen end has a small block through which a cord goes in to front beam and cleat.
Soak it overnight in water and vinegar.

I took it apart and I was missing 1/2 of the ball bearings so I just spaced them with an empy next to a full so the bearings were even. Also used waterproof axle grease.

I fixed it. Turned out the C clip had streched so I sanded the ends and now it rotates like a charm. The furller should last forever. Stainless steel. Hobie.com wants $250 for a new one. Ouch!

Hobie sells a furler tune up kit, part#61900900, includes bearings, bearing cage, nyliner nylon sleeve, darby rings, spool and housing $39.55