To fix the arm problem, open the .rsc file that defines the ironsight aiming mode. Look for the values "Fire_Aim", "Idle_Aim", "Walk_Aim", then remove the "_Aim" text for all of them.

Thanks for the tip, unfortunately not having any luck though.. I thought I had it last night, then restarted the game and started getting a weird box overlay over the screen when aiming. I think I'm just gonna give up and hope someone else does it down the road, I have no idea what I'm doing with this confusing editor.