Thanks to everyone for their replies. I feel a little dumb, BUT I was trying to follow directions!
The Leupold manual clearly states the eyepiece (they refer to it as such) is for adjusting the focus of the "reticule". They make no mention of the focusing the "picture" (so to speak). Even then they talk about only turning it a COUPLE of turns. I had to move mine out about 10 turns! Even then the reference is to the reticule, which has always been in focus.
ANYWAY: Now I really like it. Got to figure how deal with their generous eye relief though. (No I don't want a cantilevered mount!) I may put the VX-I on my .338Fed and put a fix 6x Nikon with a short eye relief on the AR.
[M25] This is a VX-I......no AO. Very familiar with using AO as I have them on both air rifles and all my rimfires.
[Pioneer] I did send them a short email this week, but it is the holidays. And yes, the legendary Leupold customer service is one reason I purchased this scope. But the problem, as I had suspected, was mine.