Boris and SerenityNetworks--thanks a bunch for the replies and suggestions.
The ammo is Norma Match 40 gr that I use for bullseye at 50 yards so I expect it to be pretty consistent velocity wise. I went back and checked my old notes and targets. I don't shoot this gun very often because I am usually not happy with it. I had not shot it for maybe a year or two before I took it out recently, so I had checked all the scope screws and action screws and I had snugged everything down. The action screws were way too tight, say 30 in-lbs. On previous targets, before I overtightened the screws, I had 1.5"-2" groups but not the vertical stringing. I had never seen vertical stringing before, only large round groups. So something changed. I also have a much larger and stiffer scope on the gun now than I had before. That is also a change. So I will start with the action screws, which I have already reset to 8 in-lbs in the rear and 15 in the front. I don't recall ever seeing any target changes as dramatic as what I saw on Thursday from this rifle, so I goofed something up, most likely. Another possibility is the new scope itself, but the groups were too consistent for it to be something loose in the scope, I think.
So my plan right now for next week is:
1. Same ammo and scope, try with much lower action screw torque. If no change, then
2. Try different ammo (I have many to choose from) and slow down shooting pace to minimize warm barrel effects, if any.
3. Don't be so bullheaded and change breathing sequence while holding everything else the same as on Thursday.
4. Swap out the scope, although the new Vortex Diamondback seemed rock solid and behaved perfectly when zeroing.
5. Buy a CZ. Cut up the Savage so my sons and grandsons never have to deal with it, save the scope and rings and bipod for the CZ.
Of these, 80% probability that door number 5 is the winner. I've messed with this rifle several times over the last 8 years and have never made much progress on getting it down to 1 moa consistently. It is the only firearm I own that I haven't at least understood where the limitation was. With the pistols, I am able to modify my technique, the grip shape, trigger reach, sights, and trigger pull feel to get to where I want to be accuracy wise.
I apologize for sounding a little hard headed about the breathing, but after many years of bullseye training shooting standing single hand, I have learned to be very much aware of sight and breathing and calling shots based on what I saw when the gun went off. I'm using a bag at the rear, and I don't see any vertical in the scope with breathing, like I would be looking for off the bench, just a little horizontal wiggle with pulse rate. After I shot the rifle on Thursday, I got out the Kadet and put a B-8C target up at 25 yards and put about 50 rounds in the x ring from a rest (10 rounds in 20 seconds, reload, repeat 4 times) just to see if there was anything wrong with my vision or control. I was OK. Yes, the rifle is different physically, mentally it is similar.
Here is the other thing. IF my latest problem is the action screw torque, and IF all the Savage guys say "the gun is very sensitive to action bolt torque", why is it so sensitive? Flimsy actions? Poor placement of the action screw bosses? In other words...poor mechanical design? If so, step 5 is the answer and it isn't anything I want to deal with. Cut it up.
Joe