[Dave V]

Sounds like you're on the right track. Large amounts of magnification also magnifies errors. Unless you're rock steady without a lens, the pin dances around like crazy.

 

[Dave V]

Relaxation is always the key to accurate shooting. If the magnified spot worries you and makes you tense up, get rid of it. You shouldn't have to fight the dot. Let it wander (hopefully near the center). Statistics are on your side so more often than not you'll be nearer the middle than when you try to force it there.

If you don't have it already, get Bernie Pellerite's book "Idiot Proof Archery." It's helped me a LOT with similar issues.