It may be okay to use a rubber abrasive wheel in the Dremel, if you're sure that's the problem. Sometimes it's a pin that's backed out of a bolt that's causing the problem, so be VERY sure before you make anything worse than it is. For instance, the inside of the receiver may be rough.
I like to use stones to hone things instead of grinding away with a Dremel. The Dremel is often used to polish, after surfaces have been honed.
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