Okay, guys, happy end.
I went ahead and peened the hand following Dr. D.'s advice. Tried swaging first but wasn't getting very far - I either didn't get right tools or right skills
Peening worked nicely - the hand stretched by 0.008" (measured from the second tooth to bottom of the hand). That took care of my timing problem.
In slow motion hammer and bolt now drop at the same time. In normal pull bolt locks much earlier. SA is fine as it was before. I wouldn't mind stretching the hand by another 0.002-0.004" but it started bending and I figured it was time to stop. When the new hand arrives from Numrich, I'll see if I can fit it better, leaving some room for future wear.
Thanks again for all your help!
Mike