Parabellus,
Congratulations on (almost) owning your first Luger, and welcome to the Luger Forum.
Before you take your Luger to the range, you need to have it checked out by a good gunsmith who is particularly knowledgable about Lugers. The failure to fully chamber a cartridge is a problem which must be addressed. Your dealer's ammunition solution betrays his inexperience with these guns, and a cavalier attitude regarding your safety.
As you live in the Bay area, you have the good fortune to be near one of the premier Lugersmiths in the country. Look up Mike Krause, and run this problem by him. I don't know his address offhand, but there are probably people here who can tell you.
Good luck, and let us all know how things come out.
--Dwight
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