at 200 yards, you will hit pretty much anything bigger than 10" square. at 300 yards, a 12-16" square...with open sights. the ak's open sights are it's achille's heel, imo. with an optic, you will do better at the 200+ yard distances.
milk jugs at 200 shouldn't challenge you too much after learning the intracacies of shooting the kalashnikov.
as for looks...browse around the forum (like the pics in the romanian forum) and see how easy it is to refinish or doll up your kalashnikov. like the ar, there are many alternative furniture sets and acessories to configure your ak to best meet your individual needs.
the vepr II and IIk models are very nice...well made and a little above average in the accuracy department. if you really want to stay on a budget with the initial purchase, the cheap, entry level romanian sar series are worth looking at. they are priced in the $300-325 range.
btw, for the best increase in accuracy for the buck invested, the redstararm trigger group is the ticket to getting the rifle shooting about at peak performance. the other tricks and tips will come as you gain expirience with the rifle.