Last night I lubed the cylinder pivot pin as well as the cylinder release tab and the center recessing pin where all of these meet. I worked the parts back and forth quite a bit while watching my picture shows.
We shot 20 rounds today with both ammo types and did not have a malfunction. Hopefully, there was just a little burr or spec of grit that was causing problems. Still don't know why it would allow the hammer to fall without hitting the firing pin. I'll be talking to the dealer and the company but it looks like it will work fine.
Thanks for the suggestions. It does seem to like the heavier bullets better as they are most accurate.
I had a problem with my Taurus SAA .357 revolver not hitting the primer most of the time. Turned out to be some crud under the floating firing pin. flooded the firing pin and channel with CLP, and blew it out with compressed air. Haven't had a misfire since. I think sometimes the hygeine in the assembly area might not be too good!