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You could come under budget with the following combo:

Marlin XL7 - 30-06 ($280-300)
Nikon Prostaff 3x9x40 ($129-159)
Total - ($409-459)

I would suggest using a Federal Sierra Game King 165gr- 30-06.
Your rifle will tell you what ammo it likes but this ammo seems to work
well in alot of rifles. I just bought a XL7-25-06 and this rig is remarkably accurate for its price.
 
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