I got a YoYoJam Legacy for Christmas and was amazing at how non-responsive it was.  After playing with it for a half-hour or so, I was still unable to get it to bind without doing 3 or 4 loops in the bind.  I chalked it up to my lack of skill, but as it turns out, it is a error when they put it together.  They forgot to take the stickers off of the o-ring response.  If you look at your "o-ring" and it is white (and your yo-yo is not white), then yours has the same problem too.  I just took a pin, pried up the o-ring, took off the sticker and put it back together and all is good.  I can do a bind in one or two loops without an issue.

Here it is with the stickers removed so you can see how "not white" it is afterwards:

 EDIT (2/4/2009):

After a few days the binding was all messed up and it never really got a "tight" bind as you could always just unwind it buy pulling hard-ish on the string.  I later got some "Flowable Silicone" from YoYoNation and now it is perfect.  That being said, I also picked up a Dark Magic (thanks to seeing the videos on ExpertVillage) and perfer that a bit better.  It is a little lighter, or at least feels that way.

As a side note, I really enjoyed ordering from YoYoNation.  They even hand wrote a thank you on the packing slip.  It was a really nice touch.  On the down side, they website does not seem to like it (sometimes pulls up blank pages unless I manually refresh) and they need an option to hide stuff that is out of stock and will not be coming back in stock.