I just read through this whole posting and the one thing missing is the fact it is a new rifle or a used rifle. If used and the muzzle is oblong it sounds like that end of the barrel got crunched somehow removing blueing and leaviing it open for rusting inside and out. If a new rifle, call Savage and ask to have it returned. If they wont then cut the barrel back past any sign of it being oblong and recrowned.

El Lobo