I have a few suggestions. If you tried these already I guess I missed it and I apologize. Call your Smith and ask if he worked on the barrel crown. If not, consider having him re-do it. This is usually done in a lathe but there are a few tools sold that can be used by hand. A shooting buddy has gotten real good with using a round headed brass screw and valve grinding compound! Next, see if the front scope base screw is touching the barrel threads. If so, shorten it. Older bases came with 4 matching screws.The newer ones that I have seen come with one shorter screw. And next, break down your bolt and give it a cleaning. Degrease the interior of the bolt body and the firing pin/spring. See if the spring is bunched up or if its straight. They make a tool for bolt disassembly that makes the job easier but it can be done without the tool.
Others have mentioned the barrel channel. I try to sand mine out so that a business card will slide between it and the barrel. The bare wood needs to be sealed. Try-oil, Varnish, Polyurethane, ect.
For what its worth, most of my 700's will shoot an inch or less with hunting bullets. I favor Sierra. My rebarreled 700's will all shoot one hole groups less than 1/2 inch.
And last of all, Good Luck!