My Marlin 982SS is accurate to minute-of-squirrel at about 150 yards, off hand. (You can translate that to about 2-3", I guess.)
Out to 300 yards, I have been able to achieve about 8" groups. However, the only ammunition consistent enough to do that for me.... was discontinued last year; so the company could make more 17 HMR.
It really sounds like you got a batch of bad ammo, or a bad rifle.
But... the biggest problem with .22 WMR ammunition is the fact that it has to perform in everything from a 4" barrelled revolver, to 22" barrelled bolt action and semi-auto rifles. The common loads just aren't tailored to work well for any specific application.
With my 982SS, I went through about 8 types (brand/bullet/velocity combinations) of ammunition before I found something my rifle liked. Since finding that first good load, I have gone through probably 8-10 more types. Right now, I have 2 loads I shoot in my rifle:
ArmsCor 40gr JSP (Discontinued, so my supply is dwindling)
Winchester Supreme 34 gr HP.
Having reached the limit of what I am willing to pay for .22 WMR ammo, so I am now 'reloading' for it.
Obligatory disclaimer:
CAUTION: The following post includes loading data beyond currently published maximums for this cartridge. USE AT YOUR OWN RISK. Neither the writer, The Firing Line, nor the staff of TFL assume any liability for any damage or injury resulting from use of this information.
I buy the cheapest ammo I can find from CCI or Winchester (their brass is the best), pull the bullet, throw my own or a different weight of powder charge, and seat the bullet of my choice. The last load of 55 grain FMJ ammo I loaded was producing one-hole groups at 50 yards, with near-.22 Hornet velocities.
I know not all of that information is useful to you at the moment, but felt the need to reiterate the lack of quality ammunition, and very picky nature of the firearms I have seen.
.22 Mag can be the funnest cartridge to shoot, or the biggest headache. You never know which way it will go.