I had the same problem with mine. I'm shooting 300gr sst with 100 gr 777 (2 pellets). I was just talking with a guy at the range and he said lap the barrel so I did. With the site all the way forward it was dead on at 50 yds. after another 10 shots it was grouping good. Got a shot on a nice doe and put it over her back at 45-50 yds down hill of me. I had a 40 yd target for practice and I was 6" high. I guess he was right when he said it will rise when it breaks in and you will have to re-ajust the site. From what I have learned they do some type of coating on the barrel for storage purposes.