My experience is similar to Dave's, 1" or 2" at 100 yards for the first 8 to 10 rounds out of a cold barrel.
It is an excellent rifle, much better in every way than the Mini rifles I've had.
I haven't fired it much because I soon discovered that my hammer was striking the bolt incorrectly and ruining it. I suggest you factor in the cost of a Red Star Arms fire control group ($90), which contains a correct hammer and also an adjustable trigger. Plan on some study and effort to install this; people on the internet act like it's just a drop-in part, but you'll have to do some minor gunsmithing either on your safety or your new trigger assembly to get everything back together correctly. It's worth it though because it's a fine trigger.
I got some Weiger mags for Christmas, but haven't tried them yet. Visit InterOrdinance's web site - they have a 4 pack of 30 rd. Weigers in a cloth magazine case, complete with sling and cleaning kit, for something like $60.
Buy it, there's nothing sweeter than an AK in .223.