Jimbo, you could be experiencing an under sized hinge pin. This will cause movement in the barrell. In one of my other replies to you I mentioned getting a new trigger spring from Belllm. Well he also makes oversized hinge pins for the Encore. I get good groups with my orignal pin but have very slight movement. I plan on getting then new pins for myself. Here is the web site you can order parts for you Encore and get it in top notch shape.
http://www.bellmtcs.com/store/index.php?category_id=1