In order to understand why the inter- and intra-granular current densities of polycrystalline superconducting oxypnictides differ by three orders of magnitude, we have conducted combined magneto-optical and microstructural examinations of representative randomly oriented polycrystalline Nd and Sm single-layer oxypnictides. Magneto optical images show that the highest Jc values are observed within single grains oriented with their c axes perpendicular to the observation plane, implying that the intragranular current is anisotropic. The much lower intergranular Jc is at least partially due to many extrinsic factors, because cracks and a ubiquitous wetting As-Fe phase are found at many grain boundaries. However, some grain boundaries are structurally clean under high resolution transmission electron microscopy examination. Because the whole-sample global Jc(5K) values of the two samples examined are 1000-4000 A/cm2, some 10-40 times that found in random, polycrystalline YBa2Cu3O7-x, it appears that the dominant obstruction to intergranular current flow of many present samples is extrinsic, though some intrinsic limitation of current flow across grain boundaries cannot yet be ruled out.