UPDATE!!!
We shot 1/2 a box of federal classics (factory) through this barrel yesterday with NO misfires and about 1 1/4 in groups!!!
I am starting to think that the problem was the nut at the reloading bench. I have been reloading for about 15 years, but I sure don't claim to be a know it all. Anyway, I think we found a solution (short term) for the misfire problem.
Smoky