Copied from my post on SigTalk
I purchased a SIG516 Gen2 last year, and right out of the box (yes I completely stripped, cleaned, and lubed it beforehand) it had short-stroking malfunctions, the same reported by some other owners.
To start... the rifle would function perfectly, on the normal gas setting, no malfunctions at all... ONLY with Federal "green tip" XM855 62gr 5.56. With this ammo, I had NO issues at all, however...
With ANY other ammo (all .223 and even 55gr 5.56) the rifle would short stroke and have failures to feed, and failures to lock back on empty magazine. The fail-to-feed would often result in a full on jam, due to me half-assedly pulling back the charging handle to check if it had failed or not.
If I set the gas valve to the "adverse" setting, it would at least reliably feed 55gr 5.56, but still fail to lock back on empty, and still fail in both ways with .223 ammo of any brand.
Now, I read quite a bit about this, mostly here and on AR15.com, and I tried many of the suggested fixes for these issues.
I tried the "leaving bolt locked back for days" trick, and stored my rifle with the bolt locked back, in fact, ALL the time for the first few months that I had it. This had no effect, so I actually purchased TWO new buffer springs, and tried them both out, after reading that perhaps the stock spring from factory could simply be too stiff/too long and never "break in" no matter how much I shot it.
I also forgot to mention that I certainly tried "breaking in" the rifle, and now have at least 500 rounds through it.