The trajectory of a 5.56mm round from a battle-zero of 25 yards to a target at 300 yards has much less than a 5" variance. Ergo, sighted in at battle-zero you will hit from point of aim to a few inches above at any range from 25 to 300 yards. The Swedes used the same idea in their turn of the century infantry rifles. The infantrymen only had to aim at the beltbuckle all the way out to 600 yards. M96 Swedish mauser is what I am talking about here, but I degress...
This is a battle weapon, if you want to plink bullseyes at 100 yards, put a scope on it. Mine shoots a little high at 100 yards as well. Not 5 inches mind you, only an inch or two, depending on load.
It might take some getting used to if you have never shot with a peep sight before, but you can definately hit man-sized targets at 300 yards and beyond. Just don't try to learn to shoot with a peep all at once, you'll give yourself a migraine!