Project Appleseed

Hello all, still learning about my SA M1. I've read that having a front handguard that is too loose can cause poi to change through a string. How much is too much?  As measured between the front ferrule and the rear face of the gas cylinder is .035". Also, my gas cylinder lock stops at about 2:00 so i have to back it off aways, i'm sure this doesn't help anything. I know i don't want the handguards tight to leave room for barrel heating, but could the front handguard moving fore and aft be causing poi shift that i have been attributing to poor cheekweld? 

There should be play in the front handguard. Rear handguard should have a little gap between it and the receiver ring.
Is there any wobble to the gas cylinder/front sight?

I found a little bit of movement at the gas cylinder. Peened the splines a little bit this morning, now it will hold the black on an sr1 with hornady fmj. Has this been my problem all along Dom?