You didn't mention what type of scope you are replacing so I might be recommending something you are getting rid of.

The Burris Fullfield IIs, either in 2-7 or 3-9 are a real good deal right now (I prefer the 2-7 for a ML). Also the Vortex Diamondback line, also in 2-7, is well thought of. Pity they no longer make the Vortex Viper 2-7, that was a sweet deal.

Regarding whether to use loose powder or pellets, I would definitely go with loose, but ask or do a search in the ML section to get a full understanding as to the why.