Hi Ronin. The bright metal part raises up and blocks the sear lever from moving enough to release the firing pin. Early lugers had them pointing one way, later ones the other way, (not sure when the change happened but it was early on).
As for the safety removal, the instructions confused me as well !
What holds the safety lever on is a pin that goes through a slot in the pivot of the safety lever. If you hold the frame as you would to shoot it and look down the inside edge of the frame where the safety lever is you'll see the top of a pin buried in the frame. You can tap that out with a suitable drift and then pull the saftey lever outward and off.
I think when they say tap the frame that's supposed to end up knocking the pin out; I found it easier just to go for the pin directly !
Hope that's clear enough. someone will come along and explain the safety issues more clearly, but this might get you started.
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