I wouldn't have believed it until I saw it, but some of the best groups I've gotten from my most accurate rifle were with an old steel-tubed El Paso K6. They're honest to goodness 1-holers and I'm sure I couldn't have done any better at 12x.
I like to use little tiny neon-colored dots as targets.
Aim small.
This is on a hunting rifle of course; if I were bench rest shooting I might have different thoughts but small fractions of an inch just don't matter a ton to me.
