I've shot mine out to 400 yards and got hits on a silhouette target, but I don't find it to be a really accurate rifle. Mine shoots about 3 MOA with Czech silvertip and I'm guessing that with better ammo that it might shoot 2 MOA or better.
For serious accuracy I'd prefer a bolt action, but if I were really of a mind to shoot long distance with a PSL, I would build a custom stock for it with a proper cheekpiece and length of pull, get an SVD mount with a Picatinny rail and then top it with a high powered mil-dot scope.
They need some trigger work too. I swapped out the trigger group on mine for an RSA.