Thanks for all the great replies. I meant I was turning the rotor with the wheel off. It grabbed about 25% of the rotation and spun freely on the rest. I also put the tire/wheel on and spun it. I could hear the breaks or something rubbing inside a bit when I would spin the wheel. This was with only that side jacked up on a jack stand. The brake fluid is fine. I have checked it several times. The brakes dont pulse or squeak or anything.
I have a spare that has a whole. I think this week I will have the spare patched and switch wheels. If that changes it than indeed the tire was out of balance. I just fear that its not a balance problem. I hope I'm wrong and you guys are right!

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1993 Benz-190E-2.6 liter