Thanks to Canonphotog for this tip.
Saw this problem come up more than once on the forum so I was bored and drew a quick picture (yeah yeah I guess I made it more detailed than necessary) on how to fix this problem if for whatever reason you don't have time to mail the battery back to sterlingtek.
Just file down this edge lightly and it should now fit the battery grip just fine. I filed it down JUST a tad and it now fits super smooth and works fine. I just haven't had the time to send it back and I needed the battery for an event last weekend.
So, incase you get one of these bad batch of batteries and don't feel like going through the hassle of a return then try this simple 2 minute job.