NOOOOOO! I couldn't be satisfied with 1/2" - 3/4" groups with my Ruger M77 bolt gun in .223. So what did I do? I decided to FLOAT the barrel! That part actually came out beautifully for my first attemp. Here's the problem. After assembling the action back to the stock, my groups vary from 1" to 2"! A local friend told me to adjust the three screws holding the action to the stock. Maybe he's on to something because when I do this the groups definately change point of impact. But, they're still terrible. Is there a particular sequence or torque setting for these screws? Am I even on the right track? I won't even be able to sleep tonight for worrying that I've ruined my rifle. Do you experts have any solutions I may try?

When I was young the old fart said, "If it ain't broke, don't go tryin' to fix it". Well, I'm older now, and it's been said before so I won't say it. Good advise from beemanbeme. You may wind up having to work up a completely new load that will match your new bedding. That was damn good accuracy, especially from a Ruger. Bummer, dude.

Get an inch pound torque wrench, so that you can repeatedly set the screw tention whenever you remove the barreled action from the stock. I don't know what the appropriate settings are for the 22 sized M77. For the standard size M77's, and other bolt guns, 60 inch/pound for the front screw, 40 inch/pounds for the rear, and the middle one should be just tight enough to keep it from falling out.

Finally a subject which I'm eminently qualified to speak on. Just kidding, but go to my web page to see some Rugers that really shoot well. I did all the work on all of them except one which was already done when I acquired it, and one which is box stock factory, except for a Timney trigger. Rugers are a lesson unto themselves. Properly done they'll outshoot a lot of rifles out there. The newest have some really fine barrels.
Here's my take on what to do.
1) You did one of the most important things, you floated the barrel. To make a long story short, floating the barrel will usually make any rifle shoot loads it likes super. Barrel pressure tends to make a rifle shoot more loads medocre. Floating narrows the range of loads it will shoot, but of those it likes, it will make them shoot super. It's not rocket science, it's harmonics.
2) Bedding is important with any rifle, properly bedded, Rugers respond amazingly well.
3) Trigger work is usually in order, I like Timneys.
4) When assembling the rifle tighten the front action screw really tight. Not so tight that it takes a breaker bar, but snug it up good. The rear action screw should be fairly tight, less so than the front screw. The middle screw is just barely snugged, that's it.
I have found rifles of all makes that won't shoot no matter what you do, including Rugers. But, far and away, Rugers have responded very well as you can see from the website. I prefer them to all others, with Winchester a close second. I'm the odd man out in that I'm not crazy about Remington 700s. They need some changes to the bolt and safety to be the finest bolt rifle made, but that's another whole issue. I wish Ruger would make a UL similar to the Rem Mountain Rifle.
Good luck with your Ruger, I bet it will shoot super when you're done.

If you free floated it you took the pressure point out of the front of the stock. The action screws have nothing to do with this. It will move your point of impact but not change your groups. The middle screw is backed off so you do not torque the action. Front and rear action screws should be torqued the same so as not to flex or twist the receiver. Use shims under the barrel like business cards or something similar in the area of the front swivel.

I'm glad it worked out for you. That must have been an awful, sickening sort of feeling when you got to the range after the float job.

I think you've us a clear example that there is such a thing as "leaving well enough alone." Of course some will seize on the fact that you've eliminated vertical stringing. While that's good, they should remember that it took some real heartache to get there. The other lesson then: if you go for it, don't be afraid to F it up some more to fix the damage.