Hey Gooose, Yes the 2600 is a small reel. Free spool release is a button on the end of handle. I used it on a 7 1/2' EagleClaw powerlite fiberglass rod (graphite was unheard of then).. I'm not sure of line capacity, but 12# would be on the heavy side. 8# or 10# much better on this finnese outfit. Caught my first ever summer run on the upper Toutle (before the mtn blew up) with this gear, (he gave me a 'whippin' at first, but I won out) and several fish thereafter.
I'll email you since you said you were interested. Ollie Damon said it was a shame that Ambassadeur discontinued it.