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Just to clarify, this isn't really correct.

A standard old-fashioned T-end spring(or one of the other various attachments) will have a noticeable and abrupt stopping point when wound. If the spring is wound past this point, you can start stripping winding gears or tear the end off the spring, but this isn't going to happen unless you grab the crown with a pair of pliers and try to turn it.

"Overwinding" is a myth. It's a common junk dealer diagnosis for a watch that's wound tight and doesn't run-this is a symptom, however, of other problems and not a diagnosis.
Ben, you mentioned that what the watch-hustler type dealer calls "overwound" is really a symptom of some other problems. I just happen to have received a trench watch (lever escapement, not cylinder) that is just about perfect in every way except for the fact that it seems tightly wound and won't start working. Is there predominant reason for this, usually?

The balance does swing, the hairspring seems to be intact, the watch hands set (it's a nailset) except for a sticky spot at about 6. If it's a broken mainspring, I would think this is fixable. The watch is a generic Swiss movement with the proper hallmarks and unsigned movement.

Just wanted to give some direction to my vintage watch guy when I take it to him.
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