I took my scope off and gave the rifle a good scrub back to steel with iosso paste. When I put it back on the rail, I noticed a small amount of oil ooze out from the 20moa rail where it was attached to the action. I thought it was a bit odd since the screws had been loctited on when the gun was originally put together with the 260 barrel.
Of course the screws were loose and there was some oil underneath. Enough to be able to lift the rail a whisker but it wasnt moving sideways much, explaining the vertical but no major horizontal I was getting. I look at myself now and think what a rookie mistake, however put the 260 barrel on and it shoots flat- in fact it was the only WA rifle in the Tassie Teams Champs (that the rail would have been loose for as well) to shoot a 60, and I could not argue with the waterline it held all event in tassie. Obviously the recoil on the 260 isnt enough to cause a problem and was why I never thought of it earlier. I cleaned everything off and re installed the rail with 5 min araldite on the screws this time to hopefully hold them in there a bit longer.
Went to the range this morning and shot 400m with an instant improvement.
This 60.5 is 180 hybrids running at 2930fps, in a light shower but still and humid air. I shot some 180vlds later in a flicky right wind and it was only a couple of bullet holes high and noticeably tighter. I have 700 and 900m next week to confirm the load and then worry no more.

So yeah at the end of the day I feel like a fool, have wasted at least 500 shots off this barrels life chasing my tail. Would like to thank all those who had the patience to help me out- Alan Fraser, Adam Pohl, Dave Mc and a few guys around the club here.
Off to clean the barrel now!