Thank you everybody for your input. My pistol is back at CZ for round 2, hopefully this issue will be resolved soon. I really can't thank everyone enough for taking the time to read this thread
M1A4ME,
The ejector is common between the safety setup and the decocker set up, the only difference other than the different levers is that the decocker spring is not installed when running safeties. The lock work is otherwise identical.
Regarding the spring, I don't think it could be installed incorrectly, put one in in the roll pin hole and the other loops under the decocker. I believe if the spring is bent up or something, it could produce a side load on the decocker.
When I got mine back from CZ (the first time), they did replace the spring with a different one that had an extra bend in it. The also replaced the sear. Whatever they did fixed the issue I was having, but now it decocks all the way down to the firing pin (hence round 2 on the warranty).
Regarding the shape of the ejector "nose", it may possibly have an impact on the decocker. I don't know what angle the ejector has with regards to the axis of the bullet being ejected, but a simple sum of the moments about the hinge point of the ejector will determine how stiff the ejector spring has to be. If the ejector spring was much stiffer in the past and it has been recently changed, it could have an impact. The spring stiffness was mentioned a couple of posts above by Tanners Owner.
Cheers,
SG