This is what your front sight should look like. Note the height:
http://www.ebay.com/itm/Savage-Mode...6?hash=item51f87a3dfe:g:edgAAOSwfpVZHK0gI'd say your front sight needs about another 1/8" of height just to get in the ball park.
If your front sight is not tall enough you might have the same problem with a tang sight not adjusting low enough.