Well Spoke with Keith via email. They are in the process, Dan Wesson that is, of moving to a new building. They are not doing repair work on guns at this point. They are shipping everything to CZ custom shop in AZ. He did mention that the rails had developed some burrs and need to be re-mated together.
I called cz custom shop but have not heard back.
So i figured what the flark. the gun is not working, lets have at it.
I have 4k cloth paper. The equivalent of 4k sandpaper Though used a bit differently. I wrapped it around a highly sophisticated and finely measure tool. (popsicle stick) oiled it and began sanding the rails.
where it was before
After about 4 hours i was able to get it on past the 1/2inch mark.

At this point i started using just oil and bore paste micro polish. Er bore bright fro J-B. I racked the slide a bajillion times. till it went back fully and smoothly. This is where i was at.
It worked well, and now the slide moves freely.
I put it all back together and oiled everything very heavily. the only thing that seems to bind is the barrel hood.
I will have to shoot the thing for function testing. After that i may put a bit of bore bright on the barrel hood and rack it a few bajillion more times. That should smooth it up nicely.
How the back of the gun looks
All back together