mythaeus
Hate to hear your troubles. Most of us love our Sterlings, even if we had a few minor issues in the begining.
I will make a comment about some of your handling disappointments.
Yes, the cocking of this little carbine is stiff. It will get better after a few hundred rounds through the gun, but it will always be stiffer than the full auto due to the extra springs required in the semi-auto design. I have a tendency (as a righty) to keep my left hand extended onto the rifle's fore-end, buttstock in the shoulder pocket, then reach up and cycle the operating handle with the right hand (strong hand). Gives me the best leverage.
Mag release button takes just a little getting used to. I really never shoot the gun "classic Sterling fashion", which is to have the left hand folded over top of the mag just outboard of the mag well. But I sure as heck use my left hand when it is time to remove or insert a mag, so it doesn't take much effort to learn to run your hand to the top of the mag (remember, everything is laid on it's side compared to other rifle and mag designs), four fingers laid around the top and front of the mag. Then the thumb is in a perfect position to disengage the mag release button. Just practice your shooting positions and mag insertions with a dry and empty gun until you come up with a procedure that feels more natural.
The folding stock is a bit of a pain until you have worked with it a while. I can release the mechanism with one hand while supporting the rifle with the left hand. It is a little tricky, and yes, it takes a little practice along with the rifle wearing in a bit, unless you get a loose, sloppy gun to start with. I push the retaining tab up with my thumb, (right hand) while using the inner portion of my trigger finger (between the finger and thumb), along with the whole fist to place pressure against the end cap, releasing the stock assembly.
Now, your biggest problem is the feeding issue. BUT, I have discovered that some feeding issues can be resolved by making sure the mag feed lips are parallel to each other. I posted some reference photos about this condition either here or over at the high road.
Look at these images, see if your rifle seems to be doing the same thing.
http://img39.imageshack.us/img39/7457/sterlingreliefcut.jpg
http://img41.imageshack.us/img41/4351/sterlingmagazinedetail.jpg
Here is the text also explaining my initial feed problems:
Sterling Mag issues
Thought I would post a picture of an issue I have had when I first received my Century/Wiselite Sterling.
It was stated in another posting that my rifle was not feeding some bullets well. I was experiencing jams in which it appeared bullets were diving into the sharp edge of the breech face/chamber entrance extractor relief cut.
I discovered after working with several magazines, that NOS (New Old Stock) mags were working just fine. Older, used mags seemed to be the ones giving issues.
I finally noticed the difference in feed lip geometry between like new mags and a few of my used mags. So I decided to try tapping an errant feed lip back into a position that I thought looked reasonable.
TURNS OUT THAT DID THE TRICK! For my rifle, in order for bullets not to impale themselves against that sharp transition edge from breech face into chamber produced by the extractor relief area, my magazine feed lips need to be parallel to each other.
I have included a photo to illustrate just what I am talking about. If you are experiencing any feeding issues, then I would highly recommend trying to bring the feed lips into a parallel position. I simply used a nylon hammer and tapped until the one feed lip came into proper position. Those two mags now feed 100%, regardless of bullet type.
I would post a picture, but the file sizes allowed are ridiculously small. You wouldn't be able to see any detail. e-mail me if you want a jpeg or pdf that illustrates what I am describing. Or check my post at THR under same subject.
OK< Hope you haven't given up on your Sterling and can get it to run right. It does take a mag in decent shape. These magazines have a wonderful reputation for smooth feeding, but again, most of this reputation stems from their duty as full auto sub guns. Bent or out of spec feed lips will impede MANY rifles functioning.
Our rebuilt semi autos are going to take a little tweaking until the run almost as flawlessly as the originals. We are working with worn parts and used items for the most part now, after the rifle served for many decades with their owners.