I went out to the range again for a little bit and found out that the 6:00 hold worked better for me at this distance. Putting the rear sight lower wasn't consistent because even holding an 1/8th way down from the front post shot high (first group). I had two sighters on target already so with this 10 shot group I only got 6 hits. The second group was held about 1/4 (1.5") high from the bottom edge.
Holding the rear sight lower will probably work better at further distances when you can split the front sight in half (easier to eyeball) or marking it like Elmer Keith did.
The next step is to practice some more and/or find more accurate ammo. Also to find a duty style gun. I feel that shooting CZs, especially an SAO that has some work done to it, is kind of cheating.