jack0458 - your dead on with your thoughts on the problem. I decided to look a little farther into my problems and this is clearly the brushes arcing constantly. When i pulled out the brushes one of them had worn to nearly nothing, and the other appeared new.
Worse yet, both of the springs were useless. They were nearly completely compressed and lacked any of the recoil one would expect.
Part of the brush (where the spring rests) on the more worn part was missing, and I found it wedged inside the motor
I looked for replacement brushes, and apparently the bush hasn't changed in ages... most somewhat modern dremels use the exact same part. so im left wondering where the problem began
To think people complained about their floor mats getting stuck... I have a product that arcs several times a second in my bare hands (for the first two minutes before it becomes unbearably hot). Is there some sort of recall going on Dremel? I see a lot of people having the same problems, and very few talking about how awesome this model is