Gerry,
I think you can expect more from your Henry with a scope. Try some different ammo. I know three different people with three different Henry's; Youth model, Golden Boy 22lr and Golden Boy 22 mag. Seen two shoot 1 1/2"or less, groups at 50m with iron sights with the right ammo. Bet you can find a brand of ammo that will please you and Henry.
Dewight