I'm having pretty good luck with a .260 Rem. (6.5X51mm) bolt action for out to 1000 yards. This bolt action is a custom build and shoots a tad less than 0.25 MOA. I've been using 139 gr. Scenars in a 26" barrel with 1:8 final twist for rifling. I'll be going to the new Berger 140 grain hybrid bullets next.
For the long range stuff definitely go for a bolt action.
The .260 Rem. does get the job done much better than the .308 Win. @ 1000 yards and should be good for deer hunting at closer, more reasonable distances as well.
A good piece of glass is like a fine piece of ass. There is no known substitute known to man, and neither are cheap.