  The spin diffusion and damped oscillations are studied in the collision of
two spin polarized clouds of cold atoms with resonant interactions. The strong
density dependence of the diffusion coefficient leads to inhomogeneous spin
diffusion that changes from central to surface spin flow as the temperature
increases. The inhomogeneity and the smaller finite trap size significantly
reduce the spin diffusion rate at low temperatures. The resulting spin
diffusion rates, spin drag and initial damped oscillations are compatible with
measurements at low to high temperatures for resonant attractive interactions
but are incompatible with a metastable ferromagnetic phase.
