I had a Henry AR7 for a short time. Bought it used off someone else who claimed it shot fine for them. When I got it and took it to my club, it shot way high - 18" over point of aim. This was at 25 m. Had some range buds try and same thing. We were adjusting that sliding peep and it didn't make a difference. I didn't think it should be THAT bad and I wasn't about to flip that peep piece the other way (which would have made it worse). Yes, the barrel was put on properly and secured properly.
Pretty unhappy with the performance but part of the reason I bought it is knowing Henry has a lifetime warranty on their products, so I contacted Gretsch in Canada, who put in a warranty claim with Henry. No questions asked, Henry sent me another barrel right away from the Rice Lake factory. Took me about a month to receive it, only because it sat at Canada Post Mississauga "clearing customs" for 2 weeks. Only difference I could see with the new barrel was that the front plastic sight blade was black instead of the previous orange.
When I got the barrel, brought it to my club and voila, it was the barrel. New barrel shot superb. I wasn't Annie Oakley or anything, but it was much better, with decent groupings. That said, I had a long contemplation about for what I can practically use this rifle. I had to count all my rounds since there was no bolt hold open and I didn't want to pull and empty click on a rimfire.
The chance of me using this in a practical survival scenario is pretty close to zero - if if came down to that type of situation, I have more and better options. Ended up selling it to someone who needed something to hunt squirrels in the bush.