Must've been a Friday-afternoon 700 PSS
The several 700 PSS rifles I've handled and shot, including the one I bought, haven't had the problems yours did.
Same goes for the 700 LTR.
Then again, I didn't buy a 700 PSS just to slap it into a McMillan tactical stock. That's the wrong approach. You should've bought the 700 VS, or 700 VLS, if you were just going to get rid of the stock, and save yourself the scratch. Why? One of the most poorly-kept secrets in the precision rifle world: They're all the same barreled action. Honest. Take a 700 Varmint, slap it into an H-S Precision Police stock, and you have a 700PSS. That, and matte bluing as opposed to parkerizing, are the ONLY difference. Well, that and a hundred dollars or so.
Now, the big question - Once the cosmetics pissed you off, how did it shoot?
If you have a 700 PSS, and I do, see rifle below, then you should have no problem generating cold-bore groups like the one below the rifle. Even if it does have a nicked finish, or missing paint on a stock that wasn't going to stay on the gun anyway.