Dan,
That looks great. Love the Ergo grip, too.
I tried one of the Russian Kobra red-dots on my VEPR II. Tell you the truth, I have to agree with you, it's probably more fun with just the iron-sights.
I just never got use to the mount that came with the Kobra.
http://www.tantal.kalashnikov.guns.ru/bstkobra.html
I would have preferred something a little less 'UTILITARIAN' looking, but then again, that is how they roll.
I did buy a slide mount with a Picatinny rail, that would slide into the side of the receiver, sits about an 1/8" above the dust cover, and is centered with the bore. It's out of the way, can still remove the dust cover, and I usually mount one of my Eotechs or Aimpoint M3 on it. I know...PURISTs are moaning and groaning, that's not Eastern-Bloc.
But like I tell 'em, 'You run what you brung'. And I'll run mine, the way I want, too