Well, after all the money, squabbling, and question asking spent on this scope and  particular ARMS equipment, I have a report to give.  BTW, thanks to all who have entertained me with their responses!

Optics and mounts: Aimpoint M2, ARMS 39, ARMS M6822
Ammunition: Lake City Lot 4
Gun: Colt 20"
Range: 100 yds
Targets: Clay Birds, 25 meter NRA pistol target
Position: Standing, leaning against tree, no sling.
Credibility: 7th award Marine Corps Rifle Expert rating, Marine Primary Marksmanship Instructor.

1. Aimpoint 4 moa dot, firing at pistol target resulted in MOA group sizes.

2. Aimpoint 4 moa dot: Broke and shattered clay targets all day long.  

3. National Match FSP, Aimpoint switched to "off", looking through optics resulted in same MOA group sizes.

4. Aimpoint removed, iron sights only, resulted in same MOA group sizes, but impact 4 inches left.

5. Aimpoint re-mounted to ARMS 39 rail, using red dot, resulted in absolutely no noticeable ZERO change.

Another Marine supported my results almost identically with his groups.  BTW, we both went 4 inches left at 100 yards with the Aimpoint optic removed.  

Note: This setup could save lives!

I also have an Aimpoint M2 with the ARMS#39 mount.  I really like it up front, but it seems a little low.  The ring I'm using is the Aimpoint wide, standard height ring.  My Aimpoint seems a little low, the front sight tower nearly occupies the bottom 2/3 field of view.  Is your ARMS#22M68 higher than the standard height Aimpoint ring?  I'm thinking of getting that ring.

I had the same setup as you do - ARMS 39 and Std wide Aimpoint ring, and also found it too low.  I switched to the ARMS 22M68 and it is just about perfect - irons line up about 1/3 of the way up the Aimpoint rather than smack in the middle.

Yeah, my front sight assembly is in the lower half of the sight picture with the ARMS 22M68. I bought spacers just in case, but didn't need them.

Is this the Aimpoint CompM2 that you're talkin about? Just couldn't find a straight "M2" on their site. TIA.

Yes, the M2 has the "never miss" option installed.  It is for us people with really bad aim  I forgot to add the "Comp" with the M2.