UPDATE
Here's a reply I got from a friend reference my 'I'm stumped' posting:
I am sorry that you are having what seems to be trouble with the lock, but it's probably NOT the lock! If it works fine out of the stock it should work just as well in the stock. The problem is probably the triggers which are not allowing the tumbler to properly engage the sear at the 1/2 cock notch. Sometimes the triggers stand too far up in the stock and prohibit the sear from engaging. When I build slim Lancaster Long rifles, I have to drastically reduce the triggers so that they allow the lock to function, the trigger makers allow large triggers so they can be adjusted to clear properly. This sounds like the same issue. It happens if the triggers are installed too tight (too deep in the stock). There is very little clearance between the correct trigger placement and one set too deep. Take the triggers out of the stock and try the lock and see if it works properly. Then also check for any other interference with the lock, look for any area that the lock touches the stock especially the sear, if you see any contact carefully reduce the area in the stock, this should all be done in the cut-out area for the lock/triggers and not be visible when reassembled. Remember the sear is not parallel, it actually gets larger close to the lock plate and must be able to move freely when assembled. If there is no contact with the sear then probably the triggers are the actual problem. When the lock is cocked it bumps the sear down in its cocking process and if the triggers interfere with this "bump" the lock will not stay in the 1/2 cock position.
If you find that this is the case simply file/grind the triggers down, DO NOT OVER HEAT IF GRINDING AS YOU WILL TAKE THE HARDNESS OUT OF THE TRIGGERS. This is not a bad issue, and if you are careful it should be easy to resolve. Good luck with it and do not get discouraged. Work slowly and check your progress often so you do not take too much off the triggers.
I removed the trigger assembly and using my diamond files I reduced the height of the triggers a bit and now all works well! Thanks again guys for all your responses!!