i going to say "shit scope" is problem #1 and NCstar is about the bottom of the shit scope dog-pile. i hate to sound like a scope snob but i'm not sure if NC star was giving away scopes that i would even bother to pick one up. you might well be better off with irons IMHO.--
there may be some variations with the ammo as well -- i have has some steel jacketed 7.62 would that will do 1.5" and less @ 100m from a ar-15 -- and other batches that are more like 3"+ make sure you got a good shooting batch before you test. if the bullets arn't uniform in size they will print everywhere. steel jacketed bullets arn't know for 'match grade accuracy and some times when the bullet making machine ain't on the $$$ they puke out some real flyers--
mounts can be big pain with the AK too so triple check everything in the mounting set up.