"FBI load" is lead SWC HP +P. I believe that the best factory load for a 442 may be lead SWC HP standard pressure, because it penetrates sufficiently. Some people believe differently. IMO, the best way to find out would be to find gelatin tests of the various contenders conducted with 2" barrel, and see what the penetration is under various conditions. You might even find that my belief is wrong according to my own standards. Obviously, I don't think so right now.
Another issue, as you allude to, is POI in relation to POA. Only you can test this, because the results depend partly on your grip, particularly in so light a pistol. In the past, there has been a tendency for many J-frame .38s to shoot to POA with the load I recommended. However, this is not always so. Also, if you find that another factory load that is better shoots lower, you can lower the front sight with a file. This is not so easy to reverse, however.
Handloading opens up a whole new set of questions. IMO, Erich provides the best answers.
Hope this helps.
P.S. Forgot to answer your question about distance. While there are certainly plenty of folks who can make head shots at 25 yards, they would probably like an easier target. Also, a non-LEO would perhaps be unlikely to have a need to shoot from such a distance, his effort usually being better spent increasing the distance from 25 to 125, preferably out of sight. That said, it seems to me that 15 or 17 yards would be max distance for most snubby practice, and you should at least try out 7 yards if your shooting facility permits. At some point, there should be an attempt to shoot very quickly at short (and eventually long) range.
