Hi Joe,
Don't worry about timely replies we all have our lives to live. You hit the nail on the head. The extension was flush at the top and protruding on the bottom. As if the barrel was pointed down slightly. I too was working with a gunsmith on that build. I felt that upper build was unsafe. The bolt trying to lock up in the extension would not be straight and square with the extension and I wasn't going to let that go. My kids shoot these. I did junk the polymer upper it's a bad apple. Sometimes these things happen. I screwed up the day I bought that thing, it doesn't have M4 ramps and my extension does DOH! Yep, I screwed up. Aside from that, that poly upper was a problem and a lemon from the minute I got it. I replaced it with an aluminum upper and everything fit together beautifully with no problems. I shot that upper a couple days ago it ran like clockwork -0- malfunctions.
thanks for the input, info and opinions, it is appreciated. Have a great day. -CB
ETA: I do have some additional info and photos of what works well for me and what doesn't when selecting an upper receiver. I just haven't posted it yet.
Funny enough, when I replaced the polymer upper with an aluminum receiver I purchased 2 new aluminum stripped uppers, one for a different build. The one I used first has an acceptable fit and finish. The second one has an ugly side to side fit on all my lower receivers. I wouldn't purchase these specific parts if I was making the purchase in person (although it could happen) I do make most of my parts purchases by mail order. The poor fit happens to all the manufacturers the problem is not cheap parts. It's just slight differences in the machine work. I'll try to get a useful post on selecting your uppers and lowers for a good fit done promptly.
With new upper, fits nicely: