From the AK-47.net web site, a simple way to sight in scope.
HOW TO SIGHT IN A PSO SCOPE
Turn windage dial to "O" (zero mark), Turn Distance turret to the number "1" ( one mark). You should feel a click.
You should have the rifle benched, and remember rest the lower hanguard on the sandbad/leather not the barrel.
Set up target at 50 yards, using the back of the target so you have white paper. Using the quarter size "Shoot and See" black target dots that turn green when you hit them.
Loosen the two screws on the top of the turrets, but do not remove them, as they are easily lost.
Place three shots. Next, return reticle to target center and dial by turning the top black dial to point of bullet impact on your target, not the silver dial with the distance/windage marks. Meaning: only move the top black dial to point of bullet impact.
So what you are going to do is put the chevron in the reticle to the center of the black dot and then dial to where the bullets last hit the target. You should now be hitting the black dot on your target. You will dial it in until your point of bullet impact is satisfactory to you.
If you are at the top quarter of the black dot at 12 o'clock then you are dead on at 100. These dots turn bright green upon bullet impact.
Sometimes the lower silver barrel may want to move with the black dial no matter how much you loosen the two screws, so you have to hold the silver dial firmly and dial accordingly. Sometimes tedious but you will get there.
Once you have everything where you like it, just tighten the screws snug and your done. Don't over tighten as the screws are often of a soft aluminum and you can mash them pretty badly.
Another, yet more complicated way to sight in scope:
http://kalashnikov.guns.ru/manual/english/svd/
If you look through this manual you will see directions for sighting in the scope.
bob