Update:
I went back to the range with another box of inexpensive Winchester 130gr .270 ($17/box of 20) and took the best steady rest I could come up with and took 3 shots at 100 yards. These 3 shots could be covered with a quarter.
Conculsion: Out of the box Savage .270win with factory scope and inexpensive ammo and a steady rest is capable of 1" groups at 100 yards.

Thanks to everyone for your replys.

Warren