Hey Joe -
Not to put a damper on your high hopes - but there are ~240 pellets in a 1 3/4 oz #4 LB shell. You should be seeing 50-60% of the payload hit the target between 25-30 yards, so 120-140 hits in your paper. You've got a decent pattern and the bird is dead, but the pattern you see in your second target is what many guys are seeing at 40 (+) yards.
I recommend you try switching size - shoot a couple #5 or #6. I always used #6 until last year, when I grabbed a box of #5 by mistake. I shot the #5 and to my surprise had a much better pattern at all distances from 10 to 50 yards (and #4 LB was the worst out of my gun). My wife used it to drop a nice 3yr old at 51 steps, and he barely flinched...
S&R