MI sent me a new barrel nut. I gave that a go and it also would not line up, through many many tries. Must be in the receiver. I took the lapping tool and figured it was time to give it a try. lubed the tool up and checked the action in the receiver. Turned smooth as butter. Placed the grit on the tool and chucked it up to the cordless drill and gave it a spin for 30 second with very light pressure pressing into the receiver. Removed the tool, cleaned every thing up. Applied a little more moly to the threads and started the install. 30 lbs not lined up, but looking much better than before. At 55 ft lbs, dead nuts on, perfect. So I am happy.
I have got to state my surprise over MI's customer service. I never contacted them about this issue. Andy was browsing threads and came across my thread. He contacted me and offered a few suggestions, and offered to send me a new barrel nut before I spent any more money trying to get it together. Andy, thanks so much for your help and assistance, and the barrel nut. It didn't work, but no fault of MI. It feels pretty good to see how support from MI is offered without being requested. Big Kudos from me, and should be noted for others. I love the hand guard, and plan to use other lengths on different builds. I'm willing to send the 2nd barrel nut back on my dime if it can be used by MI. If not, it's always good to have a spare. Again, thanks much to everyone for your help. bottom line, we got it working and I'm happy with the outcome.
Thanks,
Tec