I recieved a PPK in 380acp from my Uncle, it is a S&W gun but anyway when I fire it I have a failure to fire atleast 1-2 times per mag. The hammer falls on the firing pin but it does not fire or extract when I pull the slide back. Like I said this happens 1 or 2 times per mag.

Anyone else have this issue?

I am no PPK expert but it sounds like the extractor is not enveloping the rim of the cartridge, keeping the slide from going fully forward, into battery. Have you fully cleaned under the extractor? Have you tried different brands of ammunition? Does the extractor move freely? Does it look damaged? Does the recoil spring seem weak? Have you tried a different magazine?

You might check the S&W website to see if they are still doing warranty work (or any work) on the Houlton made Walthers.

As always, start diagnosing by checking the easiest/cheapest factors first;

CLEAN the gun. Pay particular attention the the extractor. Examine for damage.
Try different brands of ammunition. I have found .380 in particular to have wide variations in rim thickness between mfgs.
Try a different magazine, even if you have to borrow one.
Replace the recoil spring. Make sure the spring is specifically recommended for the S&W guns.
Replace the extractor and extractor spring (a bit more pricey but it depends how far you are willing to go to figure out what is happening.

Of course, you could reach out to S&W for warranty service but in my experience, sending a gun with intermittent failures back to the manufacture almost always gets a “no problems found” response.