I bought one of the very early Rossi's many years ago and have shoved unkown quantities of both 357 mag and 38 spl thru it without any problems.
I did hear that at one time about 5 years later there were some issues with this rifle. I don't remember specifics or solutions to any problem though.
For a while some of the 357's wouldn't shoot 38 spl, not real sure of why.
My dad gave me his Marlin 357 lever action from years ago. There is just nothing more fun in my safe. I have a Ruger black hawk in 357 and carry them both when I'm camping. I've brought dinner back to the camp a number of times with that combination.
If you're looking at one, BUY IT! You'll be happy you did and get years of fun out of it!