Update:
I've made a few changes to the gun in the original post.
First of all, I did not end up liking XS Sights setup. It was great for shooting within about 30 yards or so, but at 100m, the sights were far too coarse and I averaged around 6" groups at that distance. I was actually able to shoot better with the OEM sights.
So I've gone another route, I phoned Korth and and ordered an FX-II Leupold 2.5X UltraLight scope with a custom-installed German No.1 reticle. I hunted around and found a set of older NOS US-made Milled 2-piece bases (not the late production mexican junk) and a set of (now hard to find) Leupold super-low rings.
I like it. It's about perfect now.