Spanky,
As previously mentioned, it sounds as if the extractor is bad (either the tension is bad, or perhaps the hook of the extractor is worn/broke). While some may dismiss it as "gamey" (given its popularity with IPSC shooters), the AFTEC ACE extractor is the best that I have ever used. Tension is supplied by two small springs in the body of the extractor, and does it ever work well! If you need more info on this, let me know.
The bulge that you are experiencing is most likely caused by over expanding or belling of the case mouth. You want only a minimal amount of belling on the case. Just enough to where a bullet can be started for the seating operation.
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