Mark, I don't have that knife, but it sounds like there is nothing wrong. Over time the liner lock spring (engaging from the left side) will wear against the harder blade and will move to the right (knife held upside down in hand). A new liner-lock knife should have the liner just where you say it is, fully engaged, but on the left side of the blade tang.
Paracelsus
[This message has been edited by Paracelsus (edited 11-21-2000).]