Ed,
YES!! You have a bit of a problem in your ignition system. The coiler is obviously out of phase with the positractor.!! Maybe. FIRST. BEFORE you attack anything else, reduce the firing pin return spring and check/reprofile the nose of the Firing Pin. Reassemble and and test. SECOND. With the lever tight against the lower tang, the Firing Pin and Extension should slide in and out smoothly and easily. The binding you have found is contributing to your fail to fire. BEFORE lots of excitement and AFTER you have fix'd the Firing Pin and Spring, chamber a FIRED RESIZED or VIRGIN case and test the Firing Pin/Extension Rod for freedom of movement. You should be able to push the Extension Rod into it's bore easily with light pressure and it should come right back out EASILY.
If you get some light binding with NO CASE chambered, but everything frees up and runs smooth and light WITH a case chambered .... no real problem unless the bolt drop is really excessive. You should not get a lot of vertical movement of the bolt on the end of the Extension Rod.
Now ...... Take the Hammer out of the gun. Inspect the sides of the hammer for drag marks. If you have drag marks on the hammer, you have burrs in the wrist. Stone those (Burrs) lightly and if you have a VERY FLAT surface, polish the sides of the Hammer.
If you are running wire Lever Side Springs and a reduced Main Spring, there is no "breaking in" to do. At most, pull the carrier block out and on a VERY FLAT surface with 1000 or 2000 grit Wet/Dry polish all four sides of the Carrier Block. Lightly oil everything. Should run lightly enough you'll need a lever wrap to keep from hurting your fingers cycling the lever.