Ron, here are some pics of our work with the dimpled #3 rivets. I have noticed that results are very slightly different depending on which tools your using, hand squeezer, neumatic squeezer, or rivet gun.
This first pic is using the Cleveland hand squeezer for both the dimple and the rivet on the flap gap seal. The upper row is the factory installed QB. The row along the trailing edge is our work. We think we came out as good as the factory work. Do these rivets pass muster in your eyes?
Trailing edge row of rivets on flap gap seal are ours. all others are factory rivets
This next pic of dimples was using the table top dimple machine, but with the same dies. We could not detect any notable flaws.
Dimples using the table top dimple machine and Cleveland dies
This last pic was dimpled using the table top machine and rivets shot with the air gun.
Rivets shot with the air gun
I agree the heads do look below the surface, but we thought that was a good thing since the paint will fill them in. If the shop head is not down enough, have you tried cranking down half a turn on the screw jack on the squeezser? Thats what we do.
Do our rivets show the same results as what you are getting? , This wont solve your problem but maybe it will help..