Wayne,
I agree that paragraph 3.2.1.2 does not allow manual peening. This intention has been discussed and affirmed at several AMEC meetings. For jobs in which areas that cannot be reached by automatic machines should be discussed with purchaser. If the part is new to peening, i.e. oem, then part owner should be describing the peening treatement. If part is being re-peened then you probably must assume 1) it was peened properly initially and 2) re-peening should duplicate the initial efforts.