cbanman - I was having similar problems with my 7-08. My favorite go to powder, IMR4350 did not produce very good groups. Nor did Varget or H4198. I tried Nosler 140s, Hornady SSTs and Hornady Interlock.
Though my groups were not as big as yours (about 2 - 2 1/2").
I finally found a good load using Hornady Interlocks and 42 gr of IMR4064. Of course I also had a rebedding job on my Browning Micro Hunter. It is now shooting MOA pretty consistantly. Its odd that your Savage is producing groups that large. Every Savage I have shot or seen being shot was a good shooter. Is your action down tight? (Screws Snug?) Are you resting the barrel on the rest and not the stock?