IS THE BARREL SUPPOSED TO BE CENTERED IN THE HOUSING?

The Barrel is only centered at the muzzle.

"Je dicker, desto flieg!"

I have had customers with the older 1077 with out the fiber optic sight tell me that the bushing/sight in the front was not centered causing the pellet to graze the side of thier muzzle breaks.

A replacement Sight is available from Crosman® for less than $2.00. Part # 66-201.
Crosman’s phone number is: 1-800-724-7486.