The firing pin channel was 100% clean already, after heat, Simple Green and a soak in varsol, and was 100% free to rattle.
I have the spring in the correct way now. I also took a burr off the pin that holds the firing pin in. It may have needed to be tapped home another 1/4 of a mm as compared to the last time I fired it. Perhaps that held the bolt back a tiny bit? I also took the rifle down completely and re-assembled it, in case anything was binding.
Instead of hammering the retaining pin for the firing pin all the way in, and risking a glancing blow that would dent that flat top, i pushed it in 80% of the way with a vice, then tapped it in the rest of the way with the hammer. I had polished the retainer pin with 400, then 800 grit paper, now it's much easier to remove.
It works like a top now! dang that Youtube video where that dude put it in backwards...
Hits on the primers look solid. I only had time to fire it at 25 yards to make sure it was on the paper. The front sight needs to be drifted over quite a bit anyhow, the tool is on the way.
Thanks for all the suggestions.