Alright, the tech rep came in this morning and looked at our issues and the preliminary determination is bad paper. We are submitting sheets for detail analysis, but it's pretty obvious.
I must say, this guy was very helpful and did not shy aware from the problem. I am pleasantly surprised at the Sappi response so far. They seem to want the issue resolved as much as we do.
That being said, we learned that McCoy is intentionally made to have more surface texture than some other papers. It is designed to have a "tactical" feel and workability in the bindery as far as cracking on folds etc. Also this sheet is single coated in the manufacturing process vs. HannoArt which is triple coated. A triple coated sheet will always print smoother but is susceptible to cracking in the bindery due to the surface hardness.
We know McCoy has been better in the past and we just need a consistent printing surface on McCoy and we'll be fine. They are working on it and I will keep you all posted when I hear something.
In the mean time if anyone else sees this issue, please post it.