I love my FAL. It goes bang everytime I pull the trigger and it's accurate... for a battle rifle.
You're just not going to get the same accuracy you'd get out in an out of the box, match grade bolt gun. You certainly aren't going to beat an
accurized bolt gun with a semi, much less an FN-FAL.
You could get to a 1 MOA FN-FAL if you threw enough money into it and you used Black Hills or handloads. I believe there are some guys at
www.geotec.net/taylorwkrs/index.htm who do work and guarantee a 1 MOA rifle. But, checking their prices, it's at least a grand to do it.
Other accurizing services for other semis are not a heck of a lot better (Fulton's charging $1700 1.1 MOA M1As and $2200 for 1.1 MOA M1s).
If you put a grand (much less two grand) into a Remington 700, you're gonna get a hell of a rifle.
However, a scoped FAL is still a good rifle, and it can reach out pretty far and hit with reasonable accuracy, just not dead-on accuracy. Me, I just went with an Aimpoint.