For close range at 25 yards or less the 22 LR will still strike low just like centerfire 223/5.56. When I used the 22 conversion the point of impact was close enough out to 50 yards for shooting steel plates. I used a 100 yard zero for my 223/5.56 but for my dedicated 22 LR AR-15's I use a 50 yard zero. A Friend used to shoot a lot of 22's in his Colt H-Bar with 1:9 twist. He'd just raise his rear sight to hit at point of aim at 25 yards with 22 rimfire and just dialed it back to 3/6 setting for his 223/5.56 ammo.
I have had good luck with High Velocity 36-40 grain ammo, Federal 36 grain bulk, Aguilla 40 grain plated SE and CCI Mini Mags. I don't use my Colt conversion much these days because I have several dedicated 22 AR-15's. As with most 22 rimfires reliability may vary between brands of ammo or even a particulr lot/batch. It is best to try a what is available and see how they shoot. I usually prefer plated 22 LR with 22 conversions to help limit lead build up on flash hiders or in the gas system.