When .204 rifles first appeared over here, many people also found that 32s gave better groups than 40s, and there was a suggestion that the 1-12" factory twist rate might be marginal for the longer / heavier bullets. My Savage definitely prefers the heavier bullets, although it has shot many impressive groups with 30s and 32s too - it just seems a little harder work to get them to group well.
Asking sporting shooters what they use, H335 and H BLC(2) are popular here giving good enough accuracy and high MVs. I seem to remember some .204 aficionado calling H335 the powder of choice for the cartridge. I tried both Hodgdon spherical numbers with the 40gn V-Max and H335 gave very acceptable results, 5 X 5-round batches covering 25.4-26.8gn giving 0.3-0.8" groups and MVs peaking in the mid 3,700s. BLC(2) gave the promised MVs but larger groups from 0.6" - 1.0", and primers started to crater with the charge weight that gave 3,779 fps even though they went on up to 3,871 fps, the highest 40gn MV I've seen with the cartridge in this rifle.
(Factory 40gn Hornady 'Varmint Express' averaged 3,645 fps in it, 200 fps short of the claimed velocity and grouped into 0.4-0.8"; the 32gn version produced the full promised velocity averaging right on 4,100 fps up to 4,120 depending on ambient temperature with very consistent 0.5-0.6" groups - really quite remarkable for off the shelf ammunition. The 32gn version cratered primers quite badly in the Savage.)
After initial interest in the cartridge in the UK, its following is now modest. With no equivalent to prairie dog shooting here, most fox shooters have either stuck to, or returned to, the tried and trusted .223 Rem and .22-250 Rem. If they are of an experimenting / custom rifle bent, they'll try PPCs, .22BR,.243 Win with light bullets etc. There is a widespread perception that twenty calibre bullets are more wind affected than .22s, and several former .204 users have quoted that to me as a reason for returning to .22 or 6mm calibres.
Laurie,
York, England