Stovepiping means that the bolt isn't going fully rearward.
All the places to check have been mentioned except one, trying different ammo.
I don't know what ammo your neighbor is using, but if he isn't using M80 ball he isn't using the ammo that the factory is likely using to test for functionality.
Find out what ammo your neighbor is using to see if that might be the problem.
Jimro
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Machine guns are awesome until you have to carry one.
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