The nail is on the chamber side. I agree with the theory of the "Curious Monkey" The gun is about 18 years old....its 100% possible someone tried to shoot a nail out of it and it slid back into the piston housing.
I took some time to sit down and think about how the problem happened. And it occurred to me (Please see this diagram because I will be referencing to it ALLOT) What happened.
http://www.cz-usa.com/data/downloads/support_manuals/CZ_630.pdf go to page 20
When cocked so the piston is retaining the main spring, the bbl still needs to be pushed forward into its fixed position. I did that half way, then shot the gun. I thought about what actually happened and heres what I came up with.
*#21 would normally push forward untill the piston seal buffers it and it stops, however. The BBL wasnt in its fixed position so instead it went shooting into # 14. #14 drags along the spring while cocking, and de-cocking. When it got hit it got disformed in such a way that a little peice of the metal hung out, just enough to "Catch" the spring and cause it to click when cocking. I sanded it down until it was smooth. Replaced the seal with the new seal...and wala
The gun shoots quieter now (Must be that nail, the seal is quieter) Shoots great : )