First, if that picture is of your gun, the pin is squared-off and probably sharp-edged. The question is, what kind of firing pin does this gun have (based on its age)? When you cock the hammer, is the firing pin fixed solid in the hammer and the pin is conical shaped? Or does the firing pin float (you can easily wiggle it), and the shape is sort of curved from the widest part to the tip? How old is the gun? Can you give us a rough serial number range? That will help determine what type of firing pin the gun should have. If someone changed the firing pin (and maybe the hammer) to the more modern type but didn't change the firing pin bushing in the frame, then that could be the problem. OTOH, it may be that the hole in the bushing has become enlarged over use. If that's the case, the bushing will probably need to be replaced or re-bushed, with a smaller hole and the correct shape from the backside of the bushing. Regardless, I think you need to consult a 'smith who is really familiar with Colt's Single Actions. The fixes aren't that difficult, but you need to know your Colt's.