Well I figured out why my rounds were dropping off...

The front scope caps screws were backing off!!!!
I was even able to duplicate the issue After re-torquing the screws.

I picked up some new rings, torqued it all down and went back to work.

With a fairly hot barrel I put up these groups.

Imgur: The magic of the Internet

3 shot group at 112y, hot barrel, Federal 180gr.
5 shot group at 112y, hot barrel, 2013 Canadianicon MK8Z ammunition.

I bought some Hornady 174gr fmj/bt to try out some handloads.
We shall see!