I disagree with the above recommended wedge fitting instructions.
First the wedge screw, it is the keep the wedge from falling out of the slot when disassembling, not for controlling wedge depth. The wedge screw should be fully screwed into the barrel lug. The retainer hook (wedge spring) is meant to catch on the inner edge of the wedge screw.
Second, the wedge it's self. The wedge spring is intended to hook the wedge screw not to necessarily hook over the barrel frame. When I re-fit an arbor I like the wedge nose to be flush with outside of the barrel lug or slightly protruding when tightly seated. In no case should the wedge fit so deep that the wedge shoulder contacts the wedge screw. You should be able to insert the wedge 75-85% of the way with just thumb pressure then a light tap with a rawhide mallet to seat it.
If you have the barrel fitted correctly to the arbor and frame, the barrel should not be able to be bound against the cylinder. If you change the barrel gap with the wedge then the arbor is not fit correct.
If the wedge seats easily with out pressure you need a wider wedge. You can replace it or weld the rear flat edge and then file to fit. The final finish should be from a fine oil stone.
I have reached these conclusion from reading what few gunsmithing books I have found on the old Colt. From talking with other gunsmiths that have open top experience, and from rebuilding several dozen replica open tops. replacing arbors, wedges and setting back barrels.