You Guys were right it was the linkage.
I took the shutter assembly off and was able to fix it. VerY Tedious too, me took about a 1 hour. I cleaned the lens and noticed a small tick no bigger than a dust mark on the front element ( you can see it in the first pic almost center and a little left) and another small lint mark on the inner. Couldn't figure out how to take out the inner element to get a better cleaning, there is no indents for the wrench. It seems to me every vintage camera I get there is something this minor with the lens. People I buy from don't even tell me about it, maybe I am too picky.
Bought it off a guy that said certo 6 fixed it. I could tell he did becuase when I took the shutter off and was cleaning the inside metal of the camera where the linkage is there was a whole bunch of carbon powder. I know he uses this, seen it before on his other cameras. I decided to clean it up.
I probably will sell it on Ebay, be honest and let people know the ticks, just hope a get a fair price for it. Everything else is perfect. I was thinking about buying another perkeo and swapping lenses and keeping the perkeoIII becuase there was only a 1000 of them made and it has the synchro compur shutter. I seen the ones on ebay with the compur rapid. I think it is just a nice as the zeiss folders. Just paranoid about using the camera, never put a roll of film through it. I might try the EKTar once it comes out. Didn't see the nicks before.
i wonder why i thought c6 had something to do with this! i know he has done p/SVS to s/compur shutter transplants on these before so it doesnt suprise me, or pehaps the fellow that had it before did so and sent it to him to get working. it does look like it has some components that are used on the perkeo with prontor svs shutters, which makes sence as these didnt come with s/compur. it could be a selling point to have the s/compur on it (so long as you have it working now of course as you seem to indiate it is) as it makes it more preferable to someone whom wants to use it with the extra speeds, i like the s/compur on a perkeo.
any with compur rapids though are a transplant as well, compur rapids are a shutter that was finished production quite some time before the year of this camera, actually i dont think c/rapids are used on any perkeo 1,2 or E, just pronto & prontor, s/sv/svs and s/compur--
the nick on the front lens possibly wont affect the picture
at all (be suprised what you can get away with on the front lens), the one on the inner may or may not, take some pictures and see if they do..if you post an image taken with it in your advert it will likely give people confidence to bid/buy and not worry about it--its a shame that people neglect to mention small things like this on lenses as the seller did to you, genuine experianced buyers appreciate the honesty and still buy anyway--
they are a very nice little camera, very good results from the c/scopar, virtually no difference in size from the perkeo II but with the rangefinder...for me its so small in my big hands, half the time looking through the rangefinder i think its not working and then realise my fingers are covering the window duh! great little camera ,wish you luck with the sale, all things being well it should fetch a good price