I bought an American .22 Magnum a week or so ago, and over the next few days put 10 different kinds of ammo through it. The BIGGEST 5-shot group at 50 yards was around an inch, in less than ideal conditions, and the rest averaged around .6 to .7 inch. And like many rimfire rifles after 100 rounds to so it started shooting even better.
I've owned a bunch of .22 Magnums before this "cheap" rifle but never one that shot as many loads so well.
I'm glad you finally commented on how your rifle shoots. I think you bought your rifle the same day I bought mine. I have high hopes for mine, but still have fingers crossed...