After all the troubleshooting it is clear that I have bad solenoid(s). I think this guy knew they were bad when he sold it to me since he accused me of hooking it up wrong and blowing them. So I got the schematics, reversing the connections wouldn't do that anyway. So I got to thinking why on earth would he care about tossing a $20 part at it. Until I tried to buy one, they are discontinued.
Long story short.... I am screwed out of 400 bucks and still need a winch if I am unable to find the solenoids Warn P/N 2040, if anyone has any I am looking for them.