Looking at the people posting about 2" or bigger groups with a 770. I bought my mosin nagant for $200, a bit more then I wanted to pay, and on the first outing at about 50 yards, just making sure it shot, and not having much experience with iron sights, I got a 2" group standing like I would hunting. Now I'm sure if I was trying for accuracy and more experienced with iron sights I could have made a tighter group, also this isn't the norm for a m91/30.
All I'm saying is with my 74 year old Russian rifle, not trying, I got the same or better groups then your 770. Doesn't that sound just a little wrong to you?