I myself have had this same problem with red dot scopes on side mount scope rail on AK 47s. You have 2 choices!! You can use a laser to estimate how much you need to lower your scope, then mill the top of the mount lower in the front and gradually higher to the back with a file, this will give you a bit more play in setting your scope. If i remember mine right 1/16th of a inch is equal to 4 to 5 feet @ 100 yrds give or take!
The second way, is to use a Tactical Reflex Sight which has a red dot and works the best for sighting on a Ak 47. They usually have a lot of elevation adjustment that works well with side mounts.
The best way to set a scope without fireing a shot is to use "Aim shot Laser Boresighter", they are the best dead on sighter for the money.
If you wont to spend the bucks and get a real nice scope, get the Pro Series ATN 4x30 SWAT scope. It is made for fast tracking targets and or moving targets and has a dozen light settings. It cost about $500 TO $600 DEPENDING ON WHERE YOU BUY.
I talked to a guy in optics and he said thry this
http://www.sportsmansguide.com/cb/cb.asp?a=276579
They are the newest russian military scopes and they work just fine on AK's.