jdman, no mags, no ammo. Just installing BCG and matching the upper and lower.
It has closed for me twice out of a few dozen tries so I think it is close to fitting. With the hammer taped down the bolt closed no problem. I have ordered a new notchless, rounded type hammer and a spare fring pin.
In the meantime I am going to file a small amount of material off of the notch in hammer it has now as see if that fixes it. I think it is catching right on the sharp edges of the notch. I may also put the firing pin in a cordless drill and round the collar/shoulder down a little to see if that helps.
In this picture ignore the hook on the back of the M16 bolt. I am concerned about the notch on the front of the hammer on the right. When the hammer is cocked I believe that catches the firing pin collar.
I want to round my hammer so it looks more like the one on the left.
This was a used gun, used guns sometimes have problems. I don't think the seller was trying to deceive me. I am not too worried about it. Thank you to everyone who had helpful ideas and suggestions.