Thanks for posting the pictures. The bulge is hardly noticable. Mike Venturino once commented that whenever he encountered a revolver with a bulged barrel, he would test it for accuracy before making any changes. Often, bulged barrel and all, the revolver would be just as accurate as any other. Or so said Mike at any rate.
Before replacing the hand, I would continue to clean and lube the revolver and dry-fire it double action a lot. (Get some snap caps if you think you might damage the firing pin.) It may work out the crud and begin to function better. Even if the gunsmith took off the sideplate and did a thorough cleaning, dry firing still may do some good.
{Anyone else getting the ads at the bottom of the page about picking up a "Brazilian" of a different sort?}