Ok I picked up the PPK today. Let me say it looks fantastic. I was concerned that my issue wouldn't be taken seriously, but they fixed the problem and finished the frame to "their specs," which is how they put it on the work order.
Let me explain what the problem was. You do not have to look hard to find this problem on many current Gunbroker auctions. This affects both Smith PPK and PPK/S. You will not see this problem on an Interarms or German PPK line. Note that not all the Smith PPKs are like this. Looks like a very large number of blued and stainless mistakes got through though.
The problem on my gun (blued PPK) was the area of metal surrounding the disassembly hinge at the rear of the trigger guard. This part of the frame on my gun extended above and below the trigger guard. When looking at a side view of the gun you could see bare unblued metal from the metal piece sticking up on the other side. These "wings" are not in spec. Metal from teh frame should not extend above and below the trigger guard, instead this area should taper smoothly onto the rear of the trigger guard so no edges are exposed. This part of the frame also extended below the trigger guard, to the point that when viewed from the bottom the trigger guard was sunken in at the rear with metal from the front strap surrounding it.
It is kind of tough to explain. But if I pointed at it you'd go "Oh yeah, that ain't right!" It is more obvious on the blued models because of the exposed bare metal with tool marks are much more visible.
I was concerned that Smith would shrug their shoulders and say that's how we make em now. I'm very glad they didn't. Since they promptly fixed the problem (requiring the frame to be rifinished) I can see that they know it's an issue. They fixed it perfectly with good quality work.
There are still many out there that need fixing though. Check yours out, you may have the problem too. The good news is Smith will fix it if it's brought to their attention.