I think you may be confusing two different things...
The being for end loose will may times result in a "loose" action. The latch enagagement needs to be adaquite. So will too much engagement. Be sure the latch in the reciever is CLEAN with nothing to effect the abiltiy to work properly. Also be sure there is no shims attached to the receiver or the barrel. Some people epoxy them in so know what you have BEFORE you remove any material. Its easier to remove material than to add it.
I like 2/3 to 3/4 of the latch shelf. The release button will be loose if proper enagement AND too much engagement. If you dont have enough engagement and need to remove material form the shelf to get more engagement. VERY important, go slow and be sure you are not changing angles. I use dykem, but magic marker will do just the same. take a few strokes with a file and when marking is gone stop and re mark. All the while making certain not to change angles either side to side or front to back. Once you are close I switch to a stone to finish.
I just fit a Versa-Pac barrel and it took about 10 minutes. The latch only ever so slightly engaged IF I slammed the action. Now I have just past 1/2 of the shelf and complete engagement across the entire shelf.
The two threads that are in the FAQ's are excellent info on this whole process.
Good luck,
CW