I would like to get a scope for the AR15 that would work for small game (varmits, rabbits, and coyotes if I get lucky) and maybe for deer as well just in case times get really hard and I had to use the .223 for deer.

I do not know much about scopes, but I did some reading and learned that more magnification is often worse because it leads to slow target aquesition.  So I am thinking that to have a good quality scope with a lower magnification is better than having a little bit lesser quality scope with higher magnification for the same price.

*******EDIT******** Cabellas has a sale on Leopolds.  Both of these are $325.

Leopold VXIII scopes

2.5-8x36

1.5x5x20  

http://www.cabelas.com/cabelas/en/templates/product/standard-item.jsp?_DARGS=/cabelas/en/common/catalog/item-link.jsp_A&_DAV=MainCatcat602006-cat601566&id=0024471711873a&navCount=1&podId=0024471711873&parentId=cat601566&masterpathid=&navAction=push&catalogCode=8IS&rid=&parentType=index&indexId=cat601233&hasJS=true

I would like to know which would work better and if there are better options within $200 out there (enough to justify the extra $200).  I would really like to stay within the $400 range if I can help it as I will need a good mount for it.

Also, any recommendations on a mount?

I would get all of your mounts through larue.

Like this one would work the best for you. http://stores.homestead.com/Laruetactical/Detail.bok?no=30

I have one on a nightforce NXS 2.5-10X32 and love it.

So you are saying that a 2.5-8 (or 10) would be a better all around scope than the 1.5?