I had this problem and just prised the setting band apart slightly with a screwdriver and sprayed it with WD40, this fixed the problem straight away and is now as good as new. I have the 18v version of this drill and use and abuse it regularly in all kinds of dusty enviroments and has been going strong for about 3yrs since i bought it new. Best cordless drill i've ever owned!
Kev., July 2012