Ah, this topic again...
Yea, the shifter needs to be adjusted properly, at both ends, and check for kinks in the cable that may be hampering shift range.
In tyler state park, here in newtown, there is a 26 percent grade down to the canoe rental & cookout area. On my old 4 speed nexus hub, i had to walk to near the top if the hill to keep going...... With the N360 i can ride all the way up without struggling. This isn't some huge time gap of fitness either, just 2 weeks before my old bike had its final crash, i rode in the park & up that hill and ended up having to walk up. My new bike also has a dyno front hub that is a bit draggy (all the time), and is about 10 lbs heavier, so obviously the N360 is a marked improvement.
Are you able to get the shift indicator (pictured below) from near flat to near vertical?
Will toss in photos of my own tomorrow so you have a A and B comparison.
Sounds like you may have either the shifter put on incorrectly, or the axle isnt even in the dropouts or some odd kinda thing. It shoould not feel like tar, but its not going to feel like a chainring/casette either.
- Andy