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Ah, gotta raise the front sight but there's no real estate left to do so. The high/right problem is very common. According to what I've heard and read, the Mosin Nagant was intended to be used with the bayonet fixed and was usually sighted in as such. The deflection caused by the bayo usually made it shoot high/right when the bayo was removed. I've also heard that Mosin Nagants were sighted in for 300 meters at the factory. No biggie.
Most folks use two ways of raising the sight.
1. Get a nail the same diameter as the sight post. cut it to length (preferably longer than the original sight
) and install it. Shoot 3-5 round groups and cut/grind/file the nail down as needed. This may take some time and possibly a few nails.
2. Go to Wally World or a local pharmacy and look for the hollow tubed Q-tips. Usually the really cheap ones have a diameter that will fit the existing sight. Cut to length and adjust as necessary. Most folks paint them black and super glue them into place once the desired zero is achieved.
There are those few brave souls that go to the extreme and start filing a deeper sight groove in the rear sight, but sometimes that doesn't turn out so well.
When adjusting to and fro on the front sight, use a wooden dowel and a brass hammer, or just the brass hammer alone. Every Mosin Nagant Masterpiece is different; some sights move just right, some don't move at all without using a low yield nuke, some shoot across the firing line and take out the eye of some 8 yr old first timer shooting the Cricket that their daddy bought them.
Welcome to the addiction. Those of us afflicted lovingly call it "Mosinitis". The only way to ease the pain is to get your C&R license and start having them delivered to the house!!!
Hope this helps and get us some pics of the reciever details!!! Oh, and look for setscrews inside the reciever wall on the left side. If ya got those, then it's an ex-sniper!