Quick update: went out with the Pulsar Apex XQ 38 again tonight. Like I've mentioned I have been having problems getting the picture-in-picture to line up with the bottom reticle. For some reason tonight I went out and it lined up absolutely perfect. There are three things that I can think of that have changed from this shooting session to the previous shooting session where I was having problems.
1. Im wearing my eye glasses tonight rather than my contacts.
2. I used an ice cube for a target rather than the hot hand handwarmer I had previously been using.
3. Im now currently using a Pulsar external battery pack rather than the Energizer Lithium CR123 batteries.
I'm not sure which one of these three made a difference. It could have also possibly been none of these but for some reason now it lines up absolutely perfect. I didn't have time to test on it anymore hopefully I'll get a chance later. I had went out to simply sight in and now I'm heading hunting.
My thoughts are it has something to do with number 2 or number 3. Simply because the PiP was off when I used my camera phone to snap that photo so that kind of rules out the contact lenses causing a problem. I'm leaning more towards it having to do with either the type of Target I was using or the power supply.
EDIT: Having discovered the problem and remedy in my next post, i had forgotten that i had also went to profile 2 because i was shooting a different upper on my ar tonight, thats why it was lining up good. For some reason Profile 2: is dead nuts on no matter what.