There are several issues here. Cratered primers are not a sign of incorrect headspace, but they can be a sign of either too high pressure or too large a firing pin hole. What kind of "case expansion" are you seeing? Are you using rifle primers, or pistol primers?
Inexperienced handloaders seem to think that anyone can reach the maximum loads shown in manuals. This is simply not the case, and I suggest that you read the front half of the manual to learn why. A few reasons: your lot of primers is hotter than what the manual used; your powder lot is hotter; you are seating the bullets closer to the lands; your cases are softer; etc. A published maximum load is NOT a guarantee that you can get there with your rifle and components. Besides, you may already be getting the top velocity listed - only a chronograph can tell you that.
Next: the .17 Remington had quite a reputation for barrel fouling, and excess fouling can lead to high pressures with this cartridge. With T/C's reputatin for rough barels (I have not seen a .17 Rem barrel) your problem could be mostly due to bore fouling.
Anyone who is only getting one or two reloads before a head separation is incorrectly sizing their brass. This happens because the shoulder is pushed back too far when sizing the case; the solution is not to screw the sizing die down in contact with the shell holder. Either neck size, or back the sizing die out 1/2 turn and size a fired case. If it chambers, lock down the die and use that setting. If the case does not fit, screw the die down 1/16th turn at a time (1/4 turn is too much) and try the case each time until it does fit, then lock down the die. This matches your brass to you chamber.