Electricview:
Looking at the targets, even at 50 yards they would still be dead bad guys, or in serious need of repair. You said it yourself; this is probably the third time you've shot rifles. You need practice to get the sight picture, breathing and trigger control in tune. You also need to try shooting from a steady rest at first, and if you don't want to spend the money on a rest and sandbag, use a tightly rolled blanket. Use of a sling adjsuted to pass under the left bicep will help to steady the weapon, but excessive force on the sling will cause AR POI to wander a bit unless the handguards are floated. At this point, don't even begin to think about floating the handguards. You just need the practice and experience with fundamentals. A couple more things: If you are standing, with your right hand on the pistol grip, hold your right arm so that you elbow points straight out to the right, and your upper arm and forearm are parallel to the ground. Make sure that the stock buttplate is secured evenly against the shoulder, and not riding up out of the pocket. Find a good spot to place your cheek on the stock such that you focus on the front sight and the target. Forget about focusing on the rear peep sight, it is OK for it to be fuzzy. Line up the sights so that the black bull is sitting on the front post, and then make sure that the top of the post is centered in the fuzzy rear peep. Alternatively, you can sight it so that the front sight post "cuts" the black bull in half, and the top of the post and center of the bull are in the center of the rear peep. Don't worry if the bullets are not centered, just concentrate on getting consistently smaller groups in the same consistent location on the paper. Once you are doing that, then you can adjust the rear sight vertically and horizontally to center the POI with the POA.
You don't need to wait for more ammo to work on your accuracy. Practice dry firing at a spot on a far wall (make sure the weapon is cleared!) and watch how the weapon sights move when you pull the trigger and the hammer falls. You may have to experiment with what part of your index finger to pull the trigger. Squeeze, don't jerk.
As I said with the SAR stock refinishing project, learning accurate shooting is not difficult, it just requires patience.
Congrats on the new piece, and with what are really fairly decent results given your first time with the weapon and your OA experience level. Keep it up!
Noah