My advise would be to get rid of that FSB completely, especially since you're using a high powered scope. If you really think you may someday need the FSB, I'd still remove the FSB and save up for a railed handguard and some flip up BUIS.
There's many ways to remove the FSB for optics, the cheapest way is to shave it off with a dremel tool, then repaint it (I'll find you some detailed instructions on how to do this if you're interested), or you could spend $40 and get a gas block (which replaces the FSB altogether), which you could also mount a flip-up front sight to that as well.
As far as raising the scope - no, the mil-dots will range the same no matter how high up the scope is. If you're using the dots for BDC, then you'll need to re-calculate you're range data with the new height entered.
http://www.eskimo.com/~jbm/cgi-bin/jbmcard-5.0.cgi
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