Para-Frog, I handload for several of my FAL's. A good combination of components that shoots well "for me" is either the 168 Hornady BTHP or the Sierra 168 MK, with Varget powder and CCI BR2 primers. The make of brass is less important. Just make sure it's good brass like Winchester, Remington, etc. I avoid Federal. If you use milspec brass like Lake City or IMI remember that they have less capacity and you must work up loads seperately for those cases. For me, it's usually about 1.5 grains less powder.
Start low on your powder charge, and work up in .3 grain increments until your groups have minimal vertical dispersion. With the load I mentioned, 42 grains of Varget would be a good starting point. 45 grains would be maximum. You should find an accurate load before getting to 45 grains. One thing I have found is that an FAL can be very picky about what powder charge it shoots well. A difference of only .5 grain can take one from 3" vertical groups down to 1" groups.
I seat the above mentioned bullets to 2.80" overall length. That leaves the bullet about .025" off the rifling in my rifles, but they shoot well there and more importantly they feed through a mag easily.
I also have the problem with case rims getting bent on extraction. I have backed off the gas enough for one not to feed and it still did it, so accept it. I only get 4-5 loadings from a case anyway. They either get neck splits or the heads start seperating. Because of this, I keep my brass seperated into batches that all have the same amount of firings on them. Once I prep a batch of cases, they stay together until they go into the trash.
I know, before someone tells me that I'm sizing brass too short, athat is why I'm geting case head seperations, I size for about .002" headspace, using Redding Competition shellholders. If you want to see something weird, get an RCBS Precision Mic and look at how much you have to bump the shoulder back on a ffired case from your rifle to get it to chamber again. For me it's usually about 004" - .005".
Raf is right. Make darn sure your primers are seated flush or better still, a few thousandths below the case head. Even though the FAL has a spring loaded firing pin, it will still make contact with the primer on feeding and leave a little dimple on it. Never load a round into the chamber by hand and then let the bolt fly closed by flipping the BHO.
There's a lot ore to tlak about bu it's late and I'm tired.
Good luck.