I would highly recommend it by someone who has experience, not experimenting,

BUT

http://images.google.ca/imgres?imgurl=http://www.brownells.com/Images/Pr...

( I have not used them

First thing I'd do is relieve the barrel so it floats from the recoever forward. Lots of snading or careful work with a Dremel tool. When done you should be able to slide at least a business card from the front back to the reciever and not feel the card hang up. If that doesn't help it, you might get the action bedded. To check for action bind, after relieving the barrel, re-tighten the action screws. Then loosen the front guard screw slowly while holding the front of the stock and feeling the barrel with your fingers. If there's any movement at all in the barrel, it needs the action bedded. I believe the M77 will do that, not sure about the angled recoil lug. If it doesn't move and your not sure about the lug holding it down, try tightening both again and loosen the rear tang slowly. It should not move either. Feel for movement with your fingers.

I've had two of those M77's and didn't feel comfortable bedding the recoil lug but, doing the rear tang is easy if it moves. After you've done that if it still doesn't shoot well I'd bed the barrel about 2" in front of the reciever. By the time you get there, it should shoot as good as it's going to.

Thing to keep in mind is floating the barrel takes the barrel out of it while your checking the reciever and if you want the barrel bedd again, that easy. But watch out with bedding around that recoil lug tho.

I use a wooden dowel wrapped with sand paper to work the stock until it is floating free of the barrel and this works very well. The dremel would be faster but I'm old fashion I guess.

Thanks for the advice. I think im going to take it to a gunsmith and mention all the things you guys suggested and see what he says. At the least, im going to bed the action and get the barrel free floating, along with the trigger and sear stoned, or maybe a new drop in trigger. I woul like to work on the rifle myself, but this is one i really don't want to mess up on.