That "red thing" is to be used when spooling your winch up....wich you need to do before you use it. It keeps your hands clear of the drum and line. Make sure you unspool your winch line to teh last layer, put it under load (weight of the truck works great)have someone steer the truck while you line the cable up to lay down in order.
Daystar also make a winch hook holder if you don;t want to hand that hook to one side.
http://www.daystarweb.com/productlis...dcat=Isolators