Palmetto State Armory returned the AKs today.
Their letter informs us that we were using the wrong front sight tools and there was nothing wrong with the front sights which would not move. They told us to get a $31 Magnamatic AK Front Sight Tool. This drips with irony because here's one front sight tool they sell ($14.99 out of stock). And here's the other tool they sell ($3.99 out of stock).
The $37 Arsenal tool moves them, thankfully. On mine the Arsenal tool broke the sight loose with a snap, obviously breaking the burr that was trapping it. That alone tells me they did not actually attempt to move my sight. With the Ferrari of front sight tools, I can now adjust the elevation of the Fiat of AKs.
Yet I cannot help but notice that the $12 Tapco tool moves Yugo and Chinese AK sights without problems.
So spend your AK dollars on a WASR rather than a PSAK.