You align the sights so that the front sight is centered in the rear sight notch and level with the top. Then, your target is JUST on top of the front sight.
When shooting, your primary focus should be on the front sight... the rear sight and the target are secondary.
You don't adjust your sight picture, as you seem to be doing; shoot 5 shots with the sight picture I described above... then adjust the rear sight to get the groups centered on the bull. Since you have a Blackhawk, your rear sight is fully adjustable for both windage and elevation. Take a look through the owner's manual if you don't know how to adjust a sight.
Edited to add......
Look here:
http://www.rugerforum.com/ubb/Forum3/HTML/014403.html
When shooting, your primary focus should be on the front sight... the rear sight and the target are secondary.
You don't adjust your sight picture, as you seem to be doing; shoot 5 shots with the sight picture I described above... then adjust the rear sight to get the groups centered on the bull. Since you have a Blackhawk, your rear sight is fully adjustable for both windage and elevation. Take a look through the owner's manual if you don't know how to adjust a sight.
Edited to add......
Look here:
http://www.rugerforum.com/ubb/Forum3/HTML/014403.html