Hi John.

The inaccuracy may stem from the lightweight spitzer bullets.  Krags are funny beasts, and almost human in their love of "food."  The original Krag load was a 220 grain round nosed cupro-nickel jacketed bullet with 40 grains of Laflin & Rand .30 powder.  The closest you'll ever get to this with todays components is a 220 grain jacketed bullet with 40.0 grains of IMR-4350.  The IMR-4350 (originally made by Dupont) is practically a clone of the old L&R .30 powder in composition and burn rate.  Most of us use the Hornady 220 grain RN Interlock bullet, which has an exposed lead tip, but follows the same dimensions, meplat and ogive of the original bullet.  However any 220 grain RN bullet will do. 

There are other loads that shooters use that work amazingly well too.  I have a friend who shoots a 150 gr RN bullet (normally a 30-30 bullet) and he WINS matches!  The point is to try several different loads and bullets and find what works best and is the most accurate in your rifle.

This is a great forum with TONs of helpful people who will gladly help you figure out anything you need to know about all things Krag!

Maybe next summer, you can venture to Camp Perry and shoot in the Roosevelt Match with other Krags.  Unless Culpeper makes it next year, you'll likely have the oldest Krag on the firing line!!!