Thanks gents for the extra ideas.
I have now tried a variety of (modern) pellets and the power level is not good with any of them.
Interesting criticism of the Chambers breech seal. It is a bit soft and deep for such a large recess without the rigidity of the brass tube. My Mk2 has a Knibbs barrel which has a narrow raised rim at the breech, presumably designed to enhance sealing. (As an aside, Mr Knibbs has a new batch of .177 barrels being finished now and will be charging around £160 each.
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Also interesting to hear about the o-ring. Has anyone else done this or know in which AGW issue GB looked at this mod? I have one of those Chinese-made o-ring assortments in the red plastic box, but I don't know if the shore rating is suitable for the inside of an air rifle.
Dave I'm not sure about the rearsight. It certainly looks as if it's a friction fit and will move in the dovetail but I can't say I've ever done it because I only use the peep sight.