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This is the original barrel commando style with long flash hider I changed the upper to a flat top but it has had this problem sence I bought it last year.
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Does that mean that originally it was a factory assembled rifle? Look at the rear of the takedown pin lug? Do you see something stamped there? Look inside the lower where the take down pin lug seats ("above" the pistol grip) do you see anything stamped there?
If I buy a new bolt why does it need to be head spaced,
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Because changing the bolt may change the HS, or the barrel may have never been HSed. You don't HS the bolt, you HS the barrel.
how can you adjust it out if it is wrong with a new bolt?
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Depends on if the barrel is chromed and how far out the HS is.
the barrel is crhome I beleive
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Not likely if it came from OAI. What leads you to believe it's chromed? Look forward of the FSB, at 12 o-clock on the barrel. What does the stamping there say?
it doesnot spring at all
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What doesn't "spring"? The extractor? If the extractor is too stiff you can have malfs. The extractor has to be able to move aside during chambering.
do you use the insert that goes inside the spring with it because I did not,their were no instructions sent with it?
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According to [url=http://www.olyarms.com/exring.html]this[/url] you do not use the extractor spring insert when using the EXring.