I purchased a left over 2004 k2 Newport hybrid in 2006 from lbs. It was always difficult to shift RD past 5 with grip shifter(8 spd). Took it back for free 50 mile inspection, they looked it over and it was fine the next few outings. After a while, Rd shifting started to get difficult and shifts would delay. Not my favorite ride so I hung in the garage till this summer. Thought I found the problem when I discovered bottom bracket cable guide was cracked and twisting when shifting. So, when I tried to remove RD cable to install new BB guide, I couldn't get the cable out of the rear sis housing. It would only move about 1/4" and stop. WTF. Finally cut the cable off, put the cut end in by bench vise and pulled the housing off with vise grips.
One strand of the wire had broken, just about in the middle of the rear housing, and was folded and coiled like a demented spring.
Must have left the factory "Pre-broken".