RE: 3" groups @ 25 yds?
These are the kind of questions that make me want to call out BS to some of the responses. I read a post on a different thread where that person said they were shooting 1" groups at 30 yards. How many arrows are we talking here? 3, 6, 10? If you took 7 standard carbon arrows and held them tightly together in your hand, that would be an inch. Not to mention that if you shot them at a target that close together you must be a rich man because you are certainly going to break a lot of arrows. I shoot at the 1" orange target dots and I can hit them at 30 yards but my groups are around 3" for 6 arrows. Sure, I hit a few arrows while practicing but I haven't seen many people that can consistantly robin hood an arrow at 35 yards.
Now back to the original question:
If you are shooting 3" groups at 25 yards, that is more than acceptable for a hunting setup. Just make sure that you know where your broadheads are hitting.
Try putting several of the 1" dots on your target and shoot 1 arrow at each. I feel this will give you a better indication of your accuracy.