Good luck with that one, lucretia.
Timing is taking on the aspect of "rifle barrel break-in" where knowledgeable people routinely disagree and the rest of us are left wondering what's up.
First, a digression: if'n it was a Colt, I'd bet on out-of-time and "needs fixed". This is based on this Grant Cunningham
entry.
As to how much, if any, this applies to S&W is anybody's guess. I had one that was timing challenged on all six chambers that I got fixed. I found a local guy that fixed it although it's my understanding S&W will also take care of it for a reasonable fee.
The frustrating part is that, if you follow the link, you'll find Grant Cunningham saying one thing (in re: Colts) while two others are saying the exact opposite - the problem here is that the two others have both forgotten more about revolvers than I'll likely ever know. Hence, you've got diametrically opposed authoritative answers (I hate it when that happens.)
Cunningham's remarks on Colt's are not totally dissimilar from Jerry Miculek's remarks on checking time on a S&W which he did by sorta-slow-cocking in double action on the "trigger job" DVD. My impression was that if the cylinder was locked "right at" the DA break he'll proceed, if it isn't, the timing is to be repaired. Perhaps snag yourself a copy of the DVD and/or contact S&W.
My money's on Miculek which would lead me to believe that yours, if not immediately, will soon be looking to be repaired.
If Fuff chimes in, I'll jump on whatever band wagon he's on.
However,
Didn't even lock after the hammer dropped during dry firing
That just ain't right. Warrantee time unless I am very much mistaken.