Welp, I'm trying a new striker on it now.
1)We got the door lined up sans the striker as you're supposed to.
2)Installed the striker loosely.
3) Closed door to second click
4) Tightened striker through aforementioned hole with 5/16" allen wrench socket
E) Used some very colorful language as the door wouldn't budge.
6) Loosened striker through aformentioned hole with same socket.
7) Open door, quite easily I might add.
8) Repeat several times and determined first thing to try is new striker, gonna pick up today. Old one has a couple light grooves in it.
9)If that doesn't work, we'er gonna fall back on Brian's comment about the latch and suggest a new latch. I already cleaned up and lubed the current latch, it seemed to be in perfect working order...on the bench.