This seems to be the consensus for what I read - the XP has terrible bases and rings, not to mention the scope. Maybe XP stood for "Xtremely Poor"
And yes, once I realized I wasn't hitting anything, I asked my buddy (extensive rifle experience) to check it out. He suggested we go to the 25. He then monkeyed it with the rifle while I was talking with someone else. He wasn't able to hit paper on 25 either. Anyways, we shall try as many suggestions as been made here. Surely between all of those suggestions (starting with taking everything apart and reassembling it with a torque screwdriver and loctite) will yield better results. It will be bore sighted at home and then at the range at 25 with a oversized poster roll of paper plastering the board. I suspect we will find the issue pretty quickly now that we have a plan.
What sort of rest(s) was in use when your buddy tried to bore sight it? Is it likely that whatever he was using was solid enough to get a decent bore sight done?