I am the owner of a Nikon 16-48 x 65 ... model number WP65A.
I have that same model scope and I have no problem seeing 22 caliber holes at 200 yards with it.
I do have some issues trying to see 30 caliber holes at 300 yards. We cannot post targets at that range any more at Rio Salado, so it is not a big concern to me.
I do notice the scope must be mounted securely to keep vibration from moving it around. I have mine on a wide base camera tripod that I set at the very front of my bench. At 200 yards, focusing is a very touchy process when you dial the magnification up.
Are you experiencing problems with the focus? Has the scope been dropped or bumped?