Look for KraigWYs instructions on how to alter your rear sight to zero it at 100 yards.
I found them- hopefully Kraig won't mind...Here's the link to that thread:
http://thefiringline.com/forums/showthread.php?t=480424&highlight=mosin+rear+sight
"Most Mosins shoot high. There are several reasons given, which is true is anyone's guess.
The question is how to fix it. I want to keep my Mosin legal per CMP GSM Rules which precludes me from adding different sights or going to scopes so I fixed the sights.
I found by measuring the sight radious of the rifle that for every .0061 inches I could lower the rear sight or raise the front sight I could lower the impact 1 MOA. Again I can't add a taller front sight and keep the rifle with in specs.
My rifle shot 8 inches high so I had to lower the rear sight .0488.
If you flip up the rear sight you'll notice the sight proper, (the part that slided up and down) sets on the sight base which gives you your elevation increases.
I took the sight off the rifle, stuck it in a milling maching and milled off .0488 of the bottom of the sliding part, that allowed the sight to set .0488 lower. Now when I have the sight setting on the 100 mark, its sighted in at 100 yards, on 200 its sighted in at 200, 300 at 300 and 400 at 400.
My range only goes to 400 so I haven't tried it past that but there is no reason to doubt it wouldnt work at extended ranges.
This in no way screws up the sight for CMP games, once you put the put the sight back on the rifle you can't even tell it was modified.
You don't have to use a milling machine, you can use a file, but be careful to keep it flat, and don't take off too much. A bit of filing, measuring and filing again will get you there.
These rifles will shoot, we just need to get them set up for us and our ammo."