This has been added to the OP. Figured I'd put it here just so you don't need to hunt it down.
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This is just WHAT I DO.. not saying it is perfect & what you should do, but it has helps me out big time in terms of getting small ass groups as a recreational AR target shooter looking for high quality & cheap targets. One thing I hate doing is spending too much money on targets.
In my opinion, there is soooooooo much truth this statement. AIM SMALL, MISS SMALL when it comes to shooting for bug hole size 5shot groups.
http://www.youtube.com/watch?v=XbtA0TIyoI8
Yes, I know. It is kinda corny with the whole movie thing and all, but I've found that using the correct size target (aim small miss small) for the correct yardage you're shooting at (depending on you scope's max magnification), MAKES A HUGE IMPACT on your group size (well, for me it does). Yes, everyone does things differently, but this is just what I do especially as a recreational target shooter looking for inexpensive targets that are fast to make.
As for me & my LMT MWS with a vortex 4-16x50 scope, it is damn near 100% of the time @ 16x full power (for shooting groups between 100yards and beyond) unless I'm deer hunting, then it goes all the way back down to 4x as I'm hunting in Wisconsin woods and it is rare to shoot a deer over 75yards & it might be on the move. This is also where my RTS back up iron sights really come into play with my LMT in terms of deer hunting.... ANYWAY... I never really target shoot under 100yards unless it is with my rock river 5.56 with a red dot. Every scope / rifle combo has it's own purpose.
With that out of the way I really like shooting ROUND targets as they don't give a shit if my target is level or not.
With my 4-16x50 scope on the 16x setting, in my opinion a 1" circle @ 100yards is just about perfect. The 1" dot @ 100yards with my scope @ 16xpower is not too small that my crosshairs will cover it up, BUT is JUST BIG ENOUGH to make out the circle with my crosshairs knowing I'm dead center. I personally like to use a color (red, blaze orange, or blaze pink, and maybe black) on white paper so I can make out the perfect "4 pieces of pie" that my crosshairs cuts the round target into 1/4's (if that makes sense to you), this way I know I'm dead center nuts on 100% all of the time. IMO, it would really be hard to know for a fact if I'm dead center nuts on @ 100yards with the above example if my round target was a HUGE 8" in size round circle (OK, this is where you insert bitching and flaming by other bad ass know it all shooters)....
Now, with my vortex PST FFP 4-16x50 scope, in which I like to shoot 1" circles @ 100yards, then all you need to do is double the circle size for every 100yards. For example, if I like shooting 1" circles @ 100yards, then it would be 2" @ 200yards, 3" @ 300yards, 4" @ 400yards, 5" circle @ 500yards, 6" circle @ 600yards, blah blah blah.. You get the idea right???... NOW, if I'm testing my 3gun DPMS 3G1 AR rifle with a vortex 1-4 power scope set at the 4x power & I like using 1" circles @ 100yards with LMT's 16x scope, then 16power divided by 4power = 4 times 1" = 4" size target circle @ 100yards for my DPMS 3G1 with a 1-4 power scope on the 4x power setting! If 4" circle target for my 3G1 with a 4x max power scope is perfect @ 100yards, then it would be 8" @ 200yards... it really is just that simple...
Now, I HATE spending money on targets. I personally like to keep my targets for future reloading information & if I get some good groups on my target I'll actually write that reloading information right on the target for future inspection / reference. Because of this, I like to shoot really heavy duty paper. Really thick craft type paper.
With that said, THE $1 STORE IS YOUR FRIEND when it comes to making targets. I really like shooting white paper so I can see my little .223 / 5.56 bullet holes @ 300yards with my 60x spotting scope. If the paper was black, then you would never see these small holes in your spotting scope unless you're using stupid expensive shoot-n-see targets. The HUGE 2'x3' ultra thick white paper in the picture below costs me .50cents per... You can get a boat load of 1" circles on that huge 2'x3' pc of paper, or cut the paper up for smaller targets. All of the items in the picture below (other than the .50cent 2'x3' paper) costs $1!! Also, they do sell a 2'X3' BLACK COLORED 1/4" thick foam core cardboard that I'll use as a backer for my white 2'x3' targets @ 300yards so my bullet holes REALLY STAND OUT in my spotting scope. This black 2'x3' target backer board can be re-used numerous times!
This is the $3.75 dollar circle stencil I purchased from Jo-Ann fabrics & craft store. It has 1", 1-1/2", 2", 2-1/2", 3", 3-1/2", and 4" circles! This damn near covers all possible target sizes I might need from 0yards up to damn near 500yards! Using the cheap markers I got at the $1 store, and I can make any size/color circle I want. Just a little tip, put the target circles ON THE GLOSSY SIDE OF THE PAPER as it will use much much less marker & is much faster & easier to spot with your spotting scope. The stencil also has 1/2" marks on the side if you want to find the dead center of a much larger 4" target (as in the example picture with 4" red circle with 1" black circle in the middle)... The staple gun I purchased at harbor freight on sale for $5!! and is really heavy duty!
Making sure you put some real thought into the purpose of your AR rifle when picking your scope or red dot can make a HUGE DIFFERENCE. Every rifle has it's own purpose and making sure you don't waste good money on bad choices sucks ass obviously. This is where you insert bitching and flaming by others, BUT IMO, if you're going for a precision AR that will shoot bug hole groups at what ever yardage, then you better be rocking a minimum 14x scope. Red dots & 1-4power scopes are great and all, but I've found that they obviously have a quick target purpose only and you will not be happy with a red dot / 1-4power scope @ 100yards & beyond for shooting bug hole size groups. Red dots are great for fast target shooting, hog hunting, law enforcement, or on the field of battle (spray and pray type stuff).... I love my vortex viper PST FFP 4-16x50. Not only do I use it deer hunting on the 4x power, but it can stretch it's legs on the 600yard range at max 16xpower. It really is all about the purpose of your rifle.
I hope this helps! Send me a PM with any questions you might have.
My AR's. Your rifle and scope selection is really all about purpose. Make the right choice!!!!