Thanks for all of your replies, guys. Its great to have all that input. It's been a frustrating experience and trying to find a good smith in my area is not easy.
44 Amp, I didn't say I believed him. I was just trying to wrap my mind around how is one supposed to rack a slide without engaging the grip safety???? (However the hammer does engages "1/2" the time when it is depressed). And how exactly is one even supposed to know if the hammer is indeed engaged - especially in a self defense situation?? Yeah- Lets just fire off a round to make sure.
You coudn't have made a more excellent point saying that the pistol 'doesn't know' if its cycling by hand or by fire. That makes a lot of sense. The smith was just was trying to make a very strong (and might I add confident) case that this is how the gun is to function. I was pressed for time so I needed to leave. However, it did give me some time to get my ducks in order.
The frustration I have is that I'm pretty sure it wasn't returned in the same function/condition, I had to travel a bit to get there, and that I had to pay his bench fee for his "work". Although I do not want him to work or let alone touch this pistol again, I do have in mind to go back to the store and demand some of that money I paid refunded since it wasn't assembled correctly. I just have to be able to verify that. (As I mentioned, I can't find really any info about this particular model online).
Also, I would like to go back if not for the reason that I heard that they do have an identical model in their used gun section which I would be 1st in line to checkout its functioning. That may be in my favor, however I could see him coming back (trying to save face) saying that I must have then damaged it (trying to re-assemble it - *there is no way - It wasn't taken apart farther than the mainspring pin being removed and I immediately stopped when the grip safety got stuck trying to put the pin back in. *) or some parts then are indeed worn. Seems like a no-win situation. Outside of my father confirming that it was problem free, I wouldn't have any "documentation" to prove that before he worked on it. My word against this smith. Any advice on how you guys would proceed? Maybe just chalk it up for loss and just find another smith with a good reputation?
(James K - You mentioned some online instructional videos in your post. Do you have any links so I may be able to familiarize myself a little better with its functioning?)