204 ruger might just be the pickiest round even chambered.
What is the twist of the barrel?
If it shoots(somewhat) the Hornady 40Gr pills than my next step would be to try to put some federals through it with the 39Gr Sierra BlitzKing, they are the most widely used bullet that seems to have the best accuracy. Second maybe to the 35 GR Berger, but it's not a factory loaded bullet.
The problem you are dealing with(Aside from a mechanical issue) is that MOST factory barrels are cut with a 1:12 twist, which is usually best suited for a lighter bullet. But that does not offer much for the larger grains such as the 40's. The difference between a 40GR bullet and a 39Grainer is often night and day. You have to remember that handloaders are loading to .1 Grains of powder to achieve a fine balance of accuracy and speed with this cartridge. But when you find it it's a tack driver.
My 700 in 204R strings 32Grn Vmaxs 3" on a diagonal every time. It sprays 40 Grn into a 6" circle. But it will put a federal 39GR into one raged hole when I do my part(which is not often). It is that picky.
204ruger .com is the place for 204 be-all-end-all things 204.