Jerry Kuhnhausen, in his classic Shop Manual (available from Fulton Armory; see the M1 Rifle Parts & Accessories or M14 Rifle Parts and Accessories Pages under Books) has published a somewhat controversial recommendation concerning .308 Winchester and 7.62x51mm NATO ammo, headspace & chambers. I broached the subject with him some months ago. He had his plate full, so we decided to chat on this in the future. When we do I'll report the results of our conversation.
I completely agree with Jerry that if you have a chamber with headspace much in excess of 1.636 (say, 1.638, SAAMI field reject), you must use only U.S. or NATO Mil Spec Ammo (always marked 7.62mm & with a cross enclosed by a circle) since the NATO mil spec calls for a far more "robust" brass case than often found in commercial (read .308 Winchester) cartridges. It is precisely why Lake City brass is so highly sought. Lake City brass is Nato spec and reloadable (most NATO is not reloadable, rather it is Berdan primed). Indeed, cheaper commercial ammo can fail at the 1.638 headspace (e.g., UMC) in an M14/M1 Garand. Many military gas guns (e.g., M14 Rifles & M60 Machine guns) run wildly long headspace by commercial (SAAMI) standards (U.S. Military field reject limit for the M60 & M14 is 1.6455, nearly 16 thousandths beyond commercial (SAAMI) GO, & nearly 8 thousandths beyond commercial (SAAMI) field reject limit!).