Yesterday, I spent all day in the shop with the 7mm-08
I took it apart, reassembled all the pieces on the outside of the action so I could study the movement of all the parts.
The trigger extension, lifter and transfer bar are not moving the transfer bar high enough for full contact on the firing pin even with full trigger stroke, much less a short stroke.
I initially thought about adding a piece to the top of the transfer bar, but after thinking, it would only fix one thing for me.
So what I did was, I made a new trigger extension. Raising the lifting surface, and extending the surface that controls the timing of the transfer bar drop.
Then after hours of "put it together and take it part" filing everything to fit and work, I now have a full firing pin strike, even when stopping the trigger movement at the break. It breaks like a bolt gun, and very little over travel on the trigger. This mod is completely reversable by placing the stock trigger extension back in the action.
It lit off ALL of the primers that FTF at the range the other day, even the ones I hit 4-5 times trying to get ignition. Primer indentation is MUCH better
Brian offered to send me replacement parts that should correct the issue, I will try them when they get here as I would rather have a rifle unmodified (all stock parts) in the event I ever should sell it. I'll get to the range soon and try it out again and see what happens with live ammo.
I think someone smarter than me could really make some mods or replacement parts for these Handi's that would allow for a great trigger and add much to reliable ignition, and still incorporate the safety features.
Thanks to all who offered suggestions, I'll report back after the next live fire