The gun works fine now. I just had overlubed it. I have put over 1000 rounds since I created this thread with less than 10 jams. Most of the ammo we have shot has been bulk federal and winchester. The space in the stock/pin issue really isn't that big of a deal. I'll probably replace the stock in the future anyhow. For now, I just stuff a .22 cleaning patch in the side of the stock and it tightens everything up.
I ordered the gun from budgunshop.com and had it sent to arizonafirearms.com as the FFL dealer. The gun came shrinkwrapped in a Ruger box with everything (gun, mag, rail, gun lock, manual etc). Clean as a whistle when I got it, so I would be surprised if it was used... I'd only be worried about that if the gun continued to be problematic.
But yeah, I should edit the first post. The gun is working great now. A bolt buffer will solve the loose pin issue. (or at least for the bolt buffer) The mag release pin is pretty loose, but it's fine when it's in the stock.
Thanks for all the help and support!
This thread can be turned into why I love 10/22s now.
BTW Tony that is a great looking 10/22. Definitely jealous.