Theres more than one cause for ragged holes, pellet speed generally isn't one of them. Some match rifles shoot at less then 500 fps and make clean holes. Since no mention was made of gun malfunction, pellet speed is probably not the issue.
There are 3 things to look at to start. Pellet choice couldd be an issue. Try several different pellets, see if the gun shoots one better than the others.
The gun itself might be the problem also. Its possible that the pellet is being tweaked when the bolt pushes it past the front breech screw hole. 1377 barrels (along with any other of the 22xx guns) have been long known to have problems with rifling. At one point not long ago rifling was hit or miss, some barrels were good, some had little or no rifling. If possible push a pellet through the barrel and check the rifling marks. The crown should also be checked even though it was recrowned. If not done correctly small burrs that are very hard to see can be left inside. Check it with a Q tip, push it it a bit and remove it. If theres a burr it will catch bits of cotton. While you are at it make sure the crown is concentric and the ends of the rifling are equally clean and sharp all around.
The last thing is poor quality paper. If the gun is set up ok, and has no mechanical issues, try different types of paper stock. Poor paper won't punch clean, you need good stiff stock for nice holes.
The appearance of the hole is the best way to begin diagnosing the problem. A good start to see whats going on is use a waxed paper plate. If the pellet is striking the target square as it should, you'll see a nice round hole. If not you'll see pretty clearly how its hitting as there will be marks on the wax and the pellet will make a pellet shaped hole if its going in sideways. If possible post a good clear picture of the holes.
