The 25-06 is a flat shooting rifle very capable of decking CXP2 class animals (e.g. deer) at 500 yards. It is also one of the few great CXP2 rifles that can excel with CXP1 (varmint) class animals. It is reasonable to shoot prairie dogs at 600 yards and beyond with good optics and hand loads.

Therefore, for maximum enjoyment, I recommend that you get a highly accurate rifle if you can (especially if target shooting or varmint hunting interest you). That will allow you to shoot successfully at these longer ranges when you get the chance. The Rem Sendero and similar high end and custom rifles are great in 25-06 (Rem doesn't make the Sendero in 25-06 any more but there are used ones available on web auction sites).

If you need to stay under $500 the Howa 1500 and Weatherby Vanguard (same rifle) are accurate. The Savage and Tikka rifles will be very accurate in that price range too.

The Weatherby and Winchester Ultralights are good for easy carry needs but won't be as accurate for long range varmints or repetitive shots because their very light barrels (they tend to wander as they heat up).

25-06 barrels heat up fast so the heavier barrels are more accurate for repetitive shots and varmint hunting / target shooting. Get at least a 24" barrel to achieve the speed this cartridge is capable of (26" or more if you intend to shoot a lot of CXP1 and are willing to carry it for deer).

I have the Remington 700 Classic in 25-06 bought in 1990 and it stil drives tacks.
I think that you might find that the larger grain bullets like 115 will inherently shoot better groups.
It stabilizes better with the length to dia. ratio.
Never had a problem with it. And plenty of ground hog hunting between deer hunts with it also.

I would recommend taking a look at the
weatherby Vanguard in 25-06. I purchased two last year and both shoot way under a moa. Retail price is about $400 in Walmart and other chain stores. Stsinless costs more and they quit building them last year. Compare
weatherby's warranty... if the name is on it, it is in warranty!
Good Luck

After using a .243 for the past 25 years, I switched to a 25.06 this year. In April of 2010, after several hours of research on the internet, I purchased a Marlin XL7 bolt action 25.06 I have been very happy with the firearm. It gets favorable reviews on the internet. It is economical, dependable, rugged and accurate. I have had quarter-or-less-sized groups at 100 yards from a shooting table. I harvested several deer with it this year. If you do some shopping around, you can purchase this Marlin firearm between $275 and $350. It is worth every penny and, if you take care of it, will last you a lifetime.

I shoot a Weatherby Mark v ultra light in a 25-06 and its awesome. Mainly my deer rifle, with 100gr Barnes TTSX in front of Varget powder it puts them down. Check Remington or a Tikka.

You might want to try the 117 grain Sierra Pro Hunter bullets in your 25-06. They shoot super in my buddy's 25-06 and they shoot outstanding in my .257 Weatherby Mag. They are excellent killers too.