Ok guys, here's the deal. I have a colt m4 carbine. Had the removable carry handle, but I want to leave it on for reliability of the iron sights. However, I am wanting to put a night vision scope on it. I am looking for a small compact model that will be clear and have some good magnification for no more than 100-150 yard shots. I looked at some,(don't remember the brand)and really liked the upper end gen3's and gen4's. Very expensive though. Would a generation 1 or 2 scope be good enough for the situation I described here? I know, you get what you pay for, especially with the night vision stuff. Anyone with good info on night vision scopes, please reply. Thx

Gen 1 US or Russian, Crap.
Gen 2 Russian, Crap.
Gen 2 US, Can be decent, look for high RESOLUTION not just light gain. Has a shorter life than Gen 3 stuff.
Gen 3 US, very good. I would look for manual controls, personal pref.

Also consider getting a IR illuminator.

If you can afford NV and want a carry handle go buy a A2 upper reciever and have it installed.  Drop the .4 to .5 lbs off your rifle before adding a scope.  Why dont you want an ARMS 40?  I hope you plan on spending at least a couple grand on the NV and make it Gen 2+ or better.  Gen 3 is better in tube life and is better in VERY low light but is nearly identical in use to Gen 3 other than that.

Don't even know what an ARMS 40 is. That's why I'm asking.

What are you trying to hit at 100-150 yards in the dark?  The ARMS 40 is a spring loaded folding rear sight that will allow the use of the rail on your receiver and thus reduce optic height to a reasonable level.  Why do you need magnification?  A head mounted NV monocular and an IR aiming laser is less expensive and much more versatile if all you need is 200 yard and under ability.