Just wanted to give an update, I settled on a scope and purchased it and a mount last night from the LGS.
I picked up a Vortex Diamondback 2-7x35 with a deadhold BDC, between the warranty, and the price($165) I felt like it was a solid purchase. I know it is not the best out there, but I am going to be spending more on the binoculars as those will probably be what I spend most of my time looking through. I also picked up a Leupold mount that sits nicely on my flat top.
I do pick up a bit of the front sight at 2 and 3 power, but beyond that I dont see it at all. I am going to start looking into replacing the front sight with a flip as well. One thing I noticed last night after they mounted it was that at the lowest power I could actually sight through it pretty well with both eyes open, similar to a red dot.
Anyway I am heading out Saturday to get it all sighted in. I will probably sight it at 50 yards, since, when hunting I really dont plan on taking shots past 200yds.
Thanks again everyone for all the advice and information!