Can't speak to the VX-3 models but I have well over a dozen of the VX-II models and about 25% of them either have or develop adjustment and tracking problems as you describe. Shoot a group, adjust elevation up 1" (4 clicks), the next group is 2 1/2" high and 2" over. Move it down 2 1/2" and back over 2" and the group is 1" above the original group and 1" over.
Mule Deer has mentioned that a "well known company's" variables are known for getting adjustment problems and I wouldn't be surprised if it was Leupold.
Just send it back to Leupold and they will fix it for free.
Before anybody asks why I keep buying the VX-II's, I buy them used for a great price and accept the risk of problems - sometimes someone sells it dirt cheap because it has problems. I send'em to Leupold for a free tune up and they run just fine after that.
FWIW, I've never ever had a problem with a Leupold fixed power and have used more than a few of those.
