Yes the adjustment is automatic (some times). You must take the drum off to manually adjust the shoes. Check the drum for true while its off and lubricate all the sliding parts in the mechanism also
I think it may have been rusty patches on the drum from being in storage for 6 months (may have had the hand brake on). After putting about 600km onto it over the last few weeks, seems to be pretty much OK now. It is going into storage again next week in France for when I go back to the UK until spring. I have printed a large notice in red, saying "PLEASE LEAVE ME IN GEAR WITH HANDBRAKE OFF". Must remember to pump the front tyres up to 40+ PSI to stop flats.