Can someone give me an idea of what is causing my slide to peen and suggestions of steps to take? Maybe it's not really a problem, but it sure seems like it isn't right.

pics-

From you pics, it looks like the slide stop maybe to blame. It is possibly oversize and peening the slide when the slide goes in and out of battery.
Try putting some Dykem (sp?) on the top of the slide stop and cycle the action. If there is a high spot that the Dykem is rubbed off on the slide stop, try taking a jewelers file and take a little off the high spot.
Be careful and work slowly, repeating the process of Dykem application many times. One good thing, if you do mess it up, slide stops are pretty cheap.
If you have more than one 1911, try using a caliper to measure the two slide stops and see how they come out.
I maybe way off base here, but I have tinkered with 1911's for many years and this is just a WAG (wild assed guess!)

It looks like your slide stop is bouncing. The tension of the slide stop plunger against the slide stop should keep the stop from bouncing under recoil, but sometimes they don't. It can be the result of a weak plunger spring, a shallow, or, short plunger, or, an out of whack slide stop. Most of the time it is the slide stop that is at fault.

I recently had one in the shop for the very same problem and had to re-angle the upper portion of the stop so the plunger would hold it down.

The adjustment is fairly simple. If you wish to give it a try, remove the slide and insert the slide stop in the frame. With the slide stop in it's lowest position, look at the flat area where the plunger makes contact. Scribe a line just under the plunger. Remove the slide stop, and with a file, form a slightly negative angle, moving the top edge of the flat towards the muzzle. This angle acts like a detent by providing a surface the plunger can lock in against and keep the thing from bouncing.

After you have it to where the plunger actually holds the slide stop down, Re-attach the slide and check the clearance between the stop and the bottom edge of the slide. You should be able to fit the thickness of a standard business card between the slide and the stop.

Now insert an empty magazine and check to make sure the slide stop will move up on it's own to engage and lock the slide. You might have to ajust the angle a little to get it right. Don't worry if you screw it up the first time. The slide stop is relatively cheap in the scheme of things and if you go too far, you won't be out a whole lot. Good luck!

Thank you sirs. I'll give the suggested fixes a whirl and see if I can't screw up a nice pistol.