the problem you are having with the release arm is due to either the centre bearing being seized or the main pinion gear worn or both.
easy repair replace centre bearing cost probs no more than £7.
if problem still persists replace pinion gear,direct from penn spares £8.50 approx.
as with all penn reels they are a pleasure to strip/repair/service.
hope this helps.
as for the other guy about brakes i take it they are fallen out of there holders,or are they not working correctly.
1st point, put a dab of glue on the plastic to secure the magnetic brakes.
2nd it may not be the brakes at fault but actually the spool worn,have a look to see if it is groved on the brake side.