Since eveyone seems to be dancing around tha actual answer... check out the FAQ:
Combat Zero has some good information on effect of zerong at various distances.
Effect of zero distance 55g ammo has good graph/image showing the trajectories.
Since the sight is higher than the bore, if you zero at 50 yds/meters etc the bullet has to travel up to impact the line of sight, so the sights will be set up with the barrel pointing slightly upwards from horizontal. At 100yds, the bullet will hit higher than the point of aim since it is still in the upward part of the arc. Around 200 yds it will be dropping back down to pint of aim (line of sight when looking though sight). So you will dead on (point of aim is same as point of impact of the bullet) at both 50 and 200 yds (rough numbers, read the FAQ's for real details). Between 50 and 200 it will impact above your point of aim. Less than 50yds or more than 200 yds it will impact below your point of aim.
Typically you would set zeor at either 33 or 50 meters (again, check FAQ's for specific details) and then it will be "combat accurate" at a wide variety of ranges (ie. only off one way or the other by and inch or two from 25-300 meters).
My Eotechs are zerod at 100, just because my ranges are 100. One day I plan to set them for a proper "Battlesight Zero"....