Most of us have fired a considerable amount of factory loads in our Krags with no ill results. U.S. commercial loads have long been designed for the pressure limitations of the Krag.

IMHO - 'bedding problems' cause most stock cracks - too much tension on rear trigger-guard screw, bad fit of rear of action in stock, or no barrel-band (which allows barrel to lift and torque stock).

I disagree with your gunsmith.

Most Re-Loading Manuals give good data for the U.S. Krag.

FWIW, Remington, Winchester and Hornady factory ammo is generally loaded with a 180 gr "Sptizer" bullet firing north of 2200 fps, and is completely safe for all Krags.  The problem with the cracked lugs occurred when they tried to push a 220 gr RN bullet to 2200 fps, which was in excess of established safe pressures.  If you want to reload, you might consider starting with some factory ammo and saving the brass (it's how most of us acquired our stash).  Also, Hornady and Graf & Sons both have new brass available too! 

Now... if you want to recreate the original ammo, then a 220 gr RN bullet and 40.0 grains of IMR-4350 is as close as you'll ever get!  Hornady makes a 220 RN which, although not a FMJ bullet, comes nearly identical to the original bullet dimensions.
They perform excellent in matches.  I load mine with CCI #34 Mil-Spec primers, although a CCI-200 works well too.  Really, any good primer should have good results. 

Thanks for all the information!  I took it out and shot it this weekend with Remington Core-Lokt.  It grouped pretty nicely from 100.  I am very glad I picked up the Krag. 

Regarding the cracked lugs...what fps will 40 grains of powder and a 220 grain bullet do?  I am assuming that load is different than the load the Army used for the short period where they had the problems.  I am going to look into the two bullets (Hornady and Sierra) and buy some dies.  That rifle was a lot of fun to shoot, but until I start reloading it will be expensive...

With the 220 and 40.0 grains of the IMR-4350, you should be right around 2000 fps, per the original ammo.  The Hornady and Sierra bullets, although both RN have different shape/ogive.  The Hornady perform better in my Krag, while the Sierra is more accurate for others.  Try both and see which one is better for you!

As for the cracked lugs, stick with the established loads found in your standard loading manuals... and avoid the suggestions of the so called "Experts" who have that "Perfect" pet load.  If you keep the pressures below 40,000 CUP, then you should never have a problem.

Not all Krags shoot these loads the same. Try this basic one out and fine tune if you need to. There are many factors that can affect accuracy other than bullet weight and powder. The choice of primer could be a small factor (regular large rifle compared to magnum), make sure that the primer holes are clean and open. Reforming the brass after you shoot it in your Krag should be neck only resizing if you are using the same firearm. Seating depth (and OAL of the loaded round) can affect accuracy based on the exact dimensions and character of your chamber and how tight your bullet is fixed in the neck of the case. Most people don't crimp the round after seating the bullet unless you are trying to use pointed Spitzer type bullets that may not feed through the magazine well. Then, very slight crimping may be helpful to prevent the bullet from being pushed back into the case with being fed through the magazine. But, crimping can increase the pressure generated in the chamber which can affect accuracy. Too much pressure can be dangerous, also, so be careful. If you are having neck splitting on your brass, they may need to be annealed which needs to be done properly. Improper annealing can soften the head of the case and cause tremendous damage to the rifle and possibly to you.

So, go slow with changes and let us know if you are having any problems. We'll do what we can to help out and maybe learn ourselves along the way!

I think you'd be real safe working with that as a starting load. Your Krag will shoot differently than ours will, they each have their own personality. But, start there and see where you go.

Keep us informed.