Hi Matt,
I put a 3x9x42 Sightron SII Bigsky on my Mark II Classic and am getting results much like yours at 50 yds.
Also had a problem with the 5 rd mag that came with rifle, would have 2 to 3 rounds fail to feed from a 5 rd mag.
HORRIBLE! Couldn't imagine what would happen if this was a semi-auto instead of a bolt action! I called Savage and they sent me another standard packaged 5 round clip that looks exactly the same but it doesn't hang up like the other does. They also sent me a new trigger guard because mine was pitted and looked like crap. I've got one other problem Savage told me was normal but it dont look normal to me although your rifle looks like it might suffer the same problem. Problem being the barrel not seated in the stock, there's like a 3/8" gap, I don't know if its warped or what but when I was sighting in my scope it took forever to adjust the elevation to the point where I thought I wasn't going to be able that much lift out of the scope. Anything similar with yours?