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I haven't experimented with how hot to go on the loads, but so long as you keep things within SAAMI spec for .357 Magnum you should be OK. I might recommend going with heavier bullets to prevent damage to the top strap; I have seen some guys with similar models (that have that little shield) saw that little piece right in half from flame cutting. I tend to load my .357 a little on the lighter side of the range with 158 grain loads and they shoot VERY well. I'd not use the "Ruger only" loads.
Regarding front sights, any that would fit there would work fine- just make sure you get the right height (not sure how tall the stock one is).
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