I'm suprised with the accuracy of my 2007 Norinco! I managed 15/16'' 3 shot groups at 100 yd on a bench with M1A front and rear sight. Using commercial Hornady custom Interlock 165gr BTSP.
I was trying to decide what gun to bring to go to Anticosti Island next fall between my scoped PH 1200C bolt gun and my almost stock Norinco. The Norinco won the contest hands down. I know this is not normal (I have yet to find out what the problem is with the PH, I couldn't manage anything better than 2.5'' groups) but I guess I have to scope up the M-14S and bring her along!
There may be nothing at all wrong with your PH. 2.5 MOA is very respectable hunting rifle accuracy. I had a few 1200's, one in '06, one in 7 MM Mag, and one in .308. They were not superbly accurate, and IIRC, the triggers on them were not the best, but any rifle that CONSISTENLTY groups 2.5 will kill anything very dead, except for very long range gophers and such. Also, keep in mind that many of the .000031 inch groups you read about on CGN are either one-shot groups or one-of's.