My first guess, ammo. The line "someone gave me their old ammo" and not mentioning a brand tips me off. Despite the stories of "I found a box of 30-06 from WWI, cracked it open, and it ran flawlessly in my Garand", ammo does not last forever, brass corrodes, and gets weaker with time.
I think you should take out some of the variables and and see if it's really your gun's fault. First, give it a really good cleaning. Follow the military cleaning manual, make sure your bolt and carrier are very clean, all that stuff. Next, buy some high quality ammo, and I don't mean moving from Wolf to Winchester White Box. Spend maybe $15 and buy two boxes of quality .223 ammunition in 55 grain. Go to the range and blast away. If your cases continue to fail, you'll know it's something to do with the gun, and you can either post your results (hopefully with pics of the cracked casings) or call up Bushmaster. Happy (trouble)shooting!