I shoot a DPMS GII Hunter, 20" barrel, 7.62X51
As mentioned above, there is a different technique required to shoot a gas gun accurately. I suggest getting a copy of the Magpull DVD series on long range gas gun shooting, it's much easier to see different techniques being used than just reading about it. I would also suggest trading the 16" barrel to a 20" just to take advantage of the ability of the cartridge you are shooting.
Out of all the powders available for gas guns, I have found H4895 behind a Nosler 165grn Ballistic tip to give me incredible accuracy out to 1000yds so far.
I would be willing to bet that after you figure out your technique behind a gas gun, you will see a good improvement on your shots and hits. When you become proficient with your gas gun, you will be able to watch your bullet impact the target through your scope.