Gi Joe: if you are willing to raise your limit to $1000 or so, and you are still interested in a rifle in .308 chambering, I think you have a couple of choices.
For one, I agree with all who say the FAL is one of the best gas operated battle rifles ever designed. Its also beautiful to look at. It's what Websters refers you to when you look up the definition of
BAD!
However, for range use, which you say was one of your criteria, FAL sights are marginal and there are few aftermarket options. The minimum you will spend for a high quality FAL is around $1200 (check out
http://www.arizonaresponsesystems.com ). You can, however, pick up a $600-700 FAL assembled by Century and it will shoot just fine. The looks, though, can be pretty rough for the money you have to pay.
For the same $1200, you can get a very nice Springfield Armory M1A which has excellent sights and will shoot as well, if not better, than the FAL. In addition, there are many aftermarket options for the M1A that will take it all the way up to a serious match rifle if that's what floats your boat (it does mine). The only downside of the M1A is that the magazines cost about five times what you'd pay for the metric FAL mags ($50 compared to $10 for 20 rounders).
However, I agree with Turk that the AR-15 is probably the best of all worlds. For $800, or so, you can get a 20" Bushmaster XM15-E2S that should shoot MOA with good ammo. The sights are excellent, ammo is cheap(er), it looks
BAD, and there are numerous aftermarket parts that will take it all the way to a full blown match rifle. Its a beautiful design. Of course, if you already have one, then look hard at one of the above two .308 rifles.
[This message has been edited by proximo (edited August 08, 2000).]