Braud357,
You are correct about the sight adjustment of course, but it is a very easy thing to get reversed. I get it backward myself occasionally on the front sight.
Azmike
As to your problem. Your are probably setting your gap too "snug". I usually just set mine so that the barrel just barely touches the guage. I don't know if this will effect your point of impact problem, but it should fix your sticky cylinder problem. A tight gap helps with velocity and accuracy, but if you shoot ammo with a slow burning or "dirty" burning powder, unburned powder particles or powder residue can stick between the cylinder and the forcing cone locking the cylinder.
Another possibility is the cylinder may have one chamber that may be .001 or .002 longer than the other. Again, a slightly looser gap will fix the problem.
Although I have never heard of it on any revolver, there is the possibility that the notch in the rear sight was not cut deeply enough for some reason due to a manufacturing error, or even more unlikely, the front sight was made too short. DW will fix theses problems if they exist.
If you have the slightest bit of end shake in the cylinder, you may have to set the gap a little bit bigger. This will still be much closer than most other revolvers, so your accuracy and velocity should still be uneffected. Of course if you find excessive end shake, DW should replace it for you.
I would try loosening the cylinder gap until you are certain that no powder particles of any kind could cause a problem and there is no cyliner drag on any chamber against the forcing cone. If that does not work, try different ammo and see what the results are. If that does not take care of both problems, I would send it back for warranty service and I bet DW will get it working fine and send it back.
Good luck,
Roll Tide