I've read numerous place about the extractor problems with the 39. But where is a good place to start. This rifle is virtually new. It's can't have more than a few hundred rds fired through it. So I know it isn't worn out. Any help is appreciated.

In my experience with 39's, extraction problems are usually the result of dry-firing. This will raise a burr at the top of the chamber that makes extraction difficult. It also will shave lead from the bullet and gets in the chamber putting a bind on things. A Menck chamber ironing swage tool will fix it in a jiffy. Also, check the cartridge guide(thin strip of metal inside top of receiver) to make sure it is not snagging on the spent case.

+1 on the cartridge guide..

Another reason for it is that extractor is just not very strong, so if there's a lot of carbon build up around the rim face or in the chamber itself this can make matters worse. Mine was doing the same thing and I hosed it down with Kroil let it sit and went work with a tooth brush and bore mop. Finished it off by hosing it down with carb cleaner and a good oiling of what needed oiling and she extracts like a champ.