I would like to replace the gas block/ front site with one with a picatinny rail but retain the stock handguard is that possible and can you stear me in the right direction?

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Yes it's possible. May I ask why you want to do that?

I second the question, since last thing I saw was that the OP wanted to go free floated.

If you're looking for a light or a bi-pod mount I suggest taking a look at something like this, kinda nice to find an actual use for the bayonette lug too.

ProMag AR-15 Bayonet Lug Picatinny Accessory Rail

Ok I am really undecided which way I want to go with this gun. I want to mount a scope on this gun as low as possible, and the site out of the way. If the accuracy of the gun is good enough I will stop there, then I can aways take off the scope and put a Magpul flip up site on the front. Just trying to save a little money right now.

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I added this rail to my bayonet lug to mount my bipod.

You can order a railed gas block from places like brownells or midway (or any retailer). Double check the gas port size as they come in different sizes. It should be a .75 I think. Do not mount a plastic flip up sight to it because it will likely melt under sustained fire. You'll need a metal one. The handguard retainer is separate from the A2 site so just keep that part. I'm sure there a YouTube videos on the process. If not, take it to a gun smith and pay them the hour to make the swap. Hardest part will be removing the original sight. Good luck.

Thanks jaguar, this tells just what I needed to know, and gives me a new idea. I would be cheaper to just go ahead and get a low profile gas block the one I would need if I were to install a free floated handguard, try it with a scope, if it worked out leave it until money became available for the other hand guard if not I could put the A2 back on and maybe think about a more suitable hunting rifle. Thanks again just need someone to put me on the right track.

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If the whole goal is just to mount a scope, then you don't need to do anything but get a scope mount and scope. You can't mount a scope low on an AR like you would other rifles, since the stock is in a straight line with no drop from the receiver... you would never be able to get your face low enough to see through the scope, or obtain a good cheek weld.

Also, the front sight will start to ghost out at 3 to 4x magnification. Above 4x, you won't see it all.

Thanks, I'll give it a try, sorry I guess I was just over thinking it

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No need to apologize... Many folks don't think about the fact that there is no drop in the stock on an AR.

Get a mount like the Burris PEPR that puts your scope to the proper height for an AR and go from there.