Ok so I wanna do the whole build your own gun thing. I can get access to a shop so I can stamp out a receiver and I know where to buy the kit, with some American parts so it will be legal. My main question is is there a way to configure it to 5.56 or .223, I figure I really don't need that much power and that's what most of America chambers anyways, so it would probably be less of a pain n the ass to find it.
You might be asking why I would want an A.k. over an A.r., the answer is simple less maintenance more reliability and most important why the hell not.
Huh?? That is what most of America chambers??? Are you referring to that is the caliber our military is issued? Most of America chambers various rounds for various applications.
Why do you want to build your own gun? It's fun and the kits are easily accessible, but there are also many built rifles out there. If you are going with an AK, why not just get a 7.62 x 39 round? If I am going with a 5.56 rifle, I would stick with an AR platform and look for a 1:7 twist barrel so I can stabilize heavier grain bullets.
Both my AR-15s have 1:7 twist barrels and the defense rounds I load my rifles with almost achieve light 6.8SPC type of ballistics. Considering, how expensive and hard to find 6.8SPC ammo is, that is actually quite spectacular ballistics for ammo that is not expensive and also has less recoil than traditional 6.8 SPC rounds.
Also, you best be careful having a receiver that does not have a serial number.. If you ever decide to sell, trade or give that gun away you would be faced with a Class A Felony. Also, if you end up using that gun in self-defense there could always be the unfortunate drama that would arise and you risking a felony charge by a judge who doesn't know the laws regarding non-serialized firearms. I've heard stories of some Law Enforcement agencies even charging people with crimes of removing serial numbers on home made receivers. Basically, you would be safer registering any receiver you make with the ATF and putting a serial number on it.
Have you considered just buying a lower receiver and saving yourself the hassle? You can even buy receivers legally in private sales in most states under the government radar.
To answer your original question:
If you want to build an AK-74 then you must be aware that the guns are chambered in 5.45 x 39. Considering Obama just launched an Executive Order to ban all Russian firearms and ammo that means this ammo now will be harder to get than ever, as this caliber was primarily manufactured by the Russian government and affiliate companies. So, in other words, unless you are a very saavy gunsmith who can modify the design of an AK-74 and invent your own rifle, you will not be able to build a 5.56 AK-74. This is the worst time ever to be an AK-74 owner and these guns are going to become obsolete as the 5.45 ammo supply dries up.
Of course, there are AK-47 platforms out there chambered in 5.56. The Arsenal SLR-106 is an example of one. They may have parts kits available as well, but the receiver would have to be properly built to accept the appropriate type of magazines. Ak-74 magazines would not be compatible with AR-15 or the 5.56 type of mags you would use in the SLR-106.
If you really desire an 5.56 AK-47, you can consider this
https://www.k-var.com/shop/SLR-106-Series-5.56x45-Caliber-Bulgarian-Stamped-Receiver-RiflesAt almost $1100 I think you would be throwing your money down the drain.. For that money you would be better off with a Colt 6920 which is a much superior rifle in every way IMO.