So finally for the final word on this purchase

I got the guitar back from the luthier and they were able to make it work. The bridge posts were not full seated so they were able to re-set them and got a bit more room - enough to get the action comfortably low without buzzing.

** PHEW! **

The guitar guys said the workmanship on the guitar overall was good and that it was strange that they missed THAT detail given how much other work appeared to go into the guitar. They wondered why chinese makers didn't just put their own name on the guitar and sell under their own brand. Pretty decent comments given that these are guitar makers.

Still - I don't think I'll be buying from Trade Tang again...this was just too close to getting a guitar that was unplayable. At least if you buy from a Rondo or Guitar Festish or Squier - they most likely pick through some of the stock to find the lemons so you don't get one. Also you can easily send it back if needed. Not a very viable option for a Trade Tang purchase.

I'm pretty happy that I've got a decent guitar out of the whole thing. At least it worked out.