the most common problem with reel 1 not spinning is the kick-off is happening before reel 1 latch pawl has grabbed the notch in the index lever.
bet that helped :-)
first thing to check is the stop bracket position. It's J in the diagram below. Loosening/sliding it left makes the kick happen later, sliding right kick happens sooner.
in practice, the right edge of the bracket is usually flush with the frame edge behind it or slightly left.
if the stop bracket is too far left, the handle will bottom out before the kick and get stuck down. Easiest thing to do is poke a long screwdriver in there and push the bottom of the pawl (O) to release everything.
if that's no help, you've likely got gummed up stuff under the reels.
for the handle release, can you do what's shown in this video:
http://bingo.cdyn.com/slots/videos/Handle_Release.m4v