The sear engagement is not set correctly. Turn that screw in until the firing pin falls and then back out 1/2 turn and back in 1/8 to 1/4 turn and you should be go to go.

****Remember you need to double, triple and quadruple check to be sure the gun will not fire through impact or the bolt closing with the safety off. If you're not sure, it's woth the 20-25 bucks to have it adjusted by a gunsmith!****