Very nice rifle Colt6721A3. I started with a plain factory Colt 7.62x39 A2 and liked it so much that I built another similar to yours with the A3 upper and a scope.
With very little effort, I've gotten both rifles to run extremely well using a variety of USA and other frankenmags from 20 to 40 rounds. Accuracy is outstanding with 0.9--1.1 inch groups at 100 yards all day long using the scope and some nice factory Remington 123 gr. FMJ ammo. For general use I like the Vector Arms Cheetah ammo. Still outstanding accuracy (1.4--1.7 in. 100 yd groups), clean, very reliable and cheap. It's also all brass (both case & bullet) so no undue wear to the rifle.
The 7.62x39 Colts are among my favorite rifles and I shoot them (and in some ways like them) more than my 5.56 rifles. I had no trouble getting these things to run great and I believe the bad rep they have is largely due to operator laziness. The AR platform has many advantages so having one in this caliber is a real bonus in my book.