I have read that before also, but have had almost no problem using .38 spl. in mine. The times that I have feeding issues with the .38 spl. is when I have been trying to operate the bolt too fast.
I am also sad to see them discontinued.
Anyway, I have found this to be not only a fun little rifle, but also a potential lightweight hunting rifle also. I love what it can do for the .38 Special and .357 Magnum cartridges. I have gone from lightweight plinking .38 Spl. rounds at @850 fps to .357 Mag. rounds (125g) at over 2300 fps.
I like the all weather stainless steel. The composite stock is a perfect match for it and makes 30-30 rifle level loads feel to have the recoil of slightly more than a .22 LR. The 18.5 inch barrel makes for a nice short rifle that is easily maneuvered through the woods. The open sights are rugged and get me on target easily, but I did put some yellow fingernail polish on the brass bead front sight to contrast better. The bolt is strong and smooth.
The rotary magazine is probably my only real complaint; though it is minor. It would be nice if it was larger than 5 rounds. A 10 round one would be better, but I understand the issue of a rimmed cartridge in stacked magazines. Having said this though, the magazine does function flawlessly in both .38 Special and .357 Magnum. Easy to load and snap into place, but it does have a little tricky learning curve on getting it back out of the gun.