You have asked some tough questions. Short answer vary the OAL until you find what works...you are not going to reach the lands no matter what you seat at. The OAL is a standard that has been set up when the cartridge was first born. Many times it is set because of action length, magazine length or throat length. Some loading manuals will vary it slightly depending on the bullet shape they are using, but not by a whole lot. One principle you must keep in mind is case capacity. If you shorten the OAL, then you have reduced the case capacity, if you lengthen the OAL, you have increased the case capacity. Handi rifles are notorious for their long throats in .223 Remington. Most of the folks that load for the Handi rifle stick with the recommended OAL for their loads. I also have a .223 Bull barrel "ultra" Handi (1-12" twist). I seat the bullet a little longer than the recommended OAL. But I do not go over by much. I vary the bullets, powder and charge weights to get my best load. Tuning the rifle can help in a lot of cases. Read the FAQ section at the top of the Handi rifle forum to get ideas with that. There are a lot of good answers there. Many have found that the 55 grain bullets shoot best, but as in most rifles, it may or may not work for you. The dent in the side of the case will not hurt any thing. Just remember that you need to full length size them to start with and case capacity will be lessened with the dent. Start your powder charges at minimum and work your way up. It will probably blow out the dent, but with out seeing it, I am not sure. If it is small and does not blow out, then it will not hurt any thing if you have worked up your load from the bottom. Good luck to you.