The gun is in new condition so there's no wear, just poor manufacturing. The pivot pin is indeed smaller than the hole in the trigger. Also, the width of the trigger is about .030" smaller than the slot in the guard housing, so that doesn't help matters much. These two items are allowing the side-slop.
In addition to the above, the notch in the trigger where it engages the sear is wider than the sear itself, allowing front-to-rear movement.
Anywhoo, I've figured out how to fix all of the above with a larger diameter pivot pin, shim washers and an added return spring.
Thanks