scooter... he said that price includes the laser.
I'm not sure I would take a pistol back to Gander Mtn to have anyone do anything to it any sooner than I would take a tv back to Walmart to get them to fix it.
Sights don't necessarily have to be off center to be shooting left or right, but that usually are. It's possible, though, that a gun is naturally shooting in that direction. I had a Glock that would shoot left (I know, I know... the infamous "Glocks shoot left" thing... I ASSURE you that it actually was shooting left when the sights were centered). It happens.
The rear sight doesn't have a lot of room to move in the dovetail without starting to overhang. That also means it should be visually obvious if the rear sight isn't centered. The front sight is another story, however. Like I mentioned, I had one that was so far off to one side that the gun was off the paper at 20 yards. Drifting front sights is kind of delicate work depending on how tight there are. I've snapped a few off in my time (even with a sight pusher). Fortunately, since these were VTAC sights, my experience with drifting the front on my gun went smoothly. I used a pusher that I borrowed from my local range / gun shop... they could have charged me since I didn't buy the gun from them, but they aren't d-bags so they just let me do my thing. (If anyone shops for guns in Jacksonville, FL... Gun Gallery is a good group of folks. MUCH better than Shooters, IMO, in price and attitude.)
As for ammo, 15 to 20 years ago, people viewed Blazer as the "cheap stuff" (but it was the aluminum case back then). Now, anything that is not steel-cased, bi-metal jacketed eastern bloc / russian ammo is viewed as acceptable by most. I think there is nothing wrong with Blazer Brass ammo as compared to Winchester white box or American Eagle or UMC or whatever. It might not be the most accurate in your gun, but it's unlikely to be much off from other stuff in most pistols.
One thing I would suggest is that you try a couple weights / brands of ammo to see if they group differently (size and/or location). Sometimes certain bullets group in different places on the target. I'm not sure of the physics of it, though.
As far as elevation, this is a tough one with fixed sights. Typically, you have to change the height of the sights to adjust for elevation. An easier option would be to try different bullet weights. However, in general, heavier bullets tend to shoot higher... if you're already at 180 gr and it's shooting low, I'm not sure what else you can do with that.
As an academic exercise, as far as being zeroed at 25 yards... yes it will typically shoot low at 25 feet. However, it will never shoot LOWER than the sight offset (the difference between the bore axis and the sight axis). On a pistol, we are talking a pretty small difference over a relatively short distance, so I wouldn't worry too much about that being the cause of what you're seeing. Think of it this way, for a gun to be 2" at 25' and then dead on at 25 yards, the bullet would have to exit the bore MORE than 2" under the sights... either that or it would have to dip down and then go back up before coming back down again. Unless you're reviewing Zapruder film, that isn't going to occur.
Best suggestion is either compensate how you're holding, file down the front sight, or get new sights. Dawson Precision would be the place to go for that purpose, IMO. As scooter mentioned, the windage can be fixed by drifting the sights.
Your other options would be to send it back to S&W and hope they get it right the second time, which is no guarantee. Or, if it just annoys to you the point where you want to punt, then sell the gun and the laser (assuming you can't return the laser) and get something else. The last option would be the costliest and most rash, but I've been known to do such things in the past when I simply don't want to deal with something.
Sorry I got so long winded with this one... I was just trying to be thorough in my answer.