Some observations/tips:
- the flattening on the neck of the ejected brass is completely normal
- ejection problems can sometimes be caused by the gas system setting - there is a single-shot procedure you can use to adjust the gas setting, which is almost always going to be sensitive to the ammo type you're using. Look at the FAL files forum in the FAQ for the gas system adjustment procedure:
www.falfiles.com - bring the target in to the 50 - 75 meter range, and use your iron sights as a first-order check for grouping/accuracy
- if the rifle produces tight groups at that range with iron sights, the next thing to check is your optic/mount. If possible, do a rough zero at approximately 1/2 the distance of your intented range (i.e. zero at 100 meters if you're maximum intended range is 200 meters). If you have access to a laser boresight this can be very helpful. FAL groupings are affected to some extent by the gas setting/ammo in use. So make sure that your optic is mounted securely, rough zero w/laser boresight if possible, and tune from that point