The weapon I am having trouble with is a pre ban Oly Arms lower, FN upper, Wilson HBAR, FN carrier, Bushy bolt.  (Some will say the mix up is the problem right there.  I have other Franken ARs that work fine.)

Here's the deal --

I'll insert a magazine, and rack the charging handle, and usually the first round will chamber.  If I am lucky, it will work alright for a few rounds.  Then, I'll get a malfunction.  

The round does one of two things wrong:

1. It nosedives just below the chamber and squishes the bullet into the casing.  I mean, it buries itself completely flush with the top of the casing.

Or

2. The round will try to chanber, but when it leaves the magazine, it's angle seems too great and it looks as if the round gets stopped somehow before entering the chamber and it gets the side of the casing dented and scraped up from the bolt.

Here's my conclusion:

1. The FN upper just plain sucks!  I will be swapping out uppers and bolt groups next weekend just to make sure.  If that is the case, no problem.

Or

2. The Oly lower is out of spec.  The mag well is already tight, but people say that is normal.  What I think is happening is that the magazine release catch is not where it is supposed to be and the magazines are not seating far enough into the weapon.  Thus, causing FTF quite often.  If this is the case, do you think I can contact Oly?  Will they do anything about it?

Oh, this also happens with all kinds of magazines.  All are milspec except one USA and one Oralite.  (they work the best)

Sorry for the long read, but please, please help me!

I'll bet that your Oly Arms PCR "Practically Crap Rifle" lower is out of spec.  I've had Oly receivers with undersized magazine wells and mis-indexed mag catches - incidentally, that's why I refuse to do business with them.

Well, if that is the case, what can I do about it?  Will Oly correct this problem?  I sure as hell hope so!

I've had problems with the cuts and holes in Oly lowers being in the wrong place. I'd bet that your mag catch cut is too low. Call Oly and see what they will do about it (maybe re-issue new receiver with old serial number for minimal cash). Otherwise, dump the lower.

Edit for typo