First thing I'd try is switching ammo. Try some of everything that you can get your hands on (and make good notes). Its quick, cheap and involves the least amount of labour (and probably the least amount of money, too).
What distance were you at? Depending on the ammo, a barrel that shoots high at 50 yards may be right on at 75 or 100. (The rifle I shoot most often is zeroed at 75 yards with Federal Gold match, and will shoot about 1.5" high at 50 yards, and 3.5" low at 100. Changing to a different bullet weight and/or a different velocity will change those numbers.)
If this barrel was cut down, I can see two possible problems: it may not have been re-crowned correctly, or whatever was used as the new front sight is at the wrong height (and off center, too, as you say that the point of impact is always both high and to the right of the point of aim).
Other than the high and to the right business, does this rifle group well? If it won't group, I'd look at re-crowning. If it groups well, I'd look at adjusting or replacing the front sight. Many can be drifted left to right to adjust for the windage error, but you'll have to make the front sight taller to lower the point of impact. I saw something t'other day about moulding some glass bedding compound around a front sight for just this purpose (but of course, I no longer recall where I saw that...you might try asking on the "Gunsmithing" forum).
Even if you can find a replacement barrel at a reasonable price, experiment a little with this one. At this point, you can't make it any worse, and the only thing it will cost you is time....
