Hmmm, so you're saying that the declination scale zero degree mark on the back wasn't lined up with the bezel scale zero degree mark on the front?

I might recommend the Silva Expedition 15 (outside the U.S., I think) or the Brunton 15TDCL (inside the U.S.). It is made by Silva of Sweden.

I pulled out my trusty MC-2D, essentially the same model you have, to see what the deal is. My declination and south line up precisely, or at least as well as my aged eyes can discern. My particular model is at least fifteen years old.

Now I can set the declination scale so that it does not point directly to south, by one degree, two degrees, or more. That is the purpose of the very small brass screw on the back of the compass ring (at least that is where it is on mine) and that is why there is that very tiny screwdriver on the lanyard. The idea is that I can set the declination to whatever value is appropriate for the region in which I am traveling.

If the compass ring and the declination scale are centered on the same point, and you can change the declination offset, I would think your compass is perfectly fine....

We may need to resort to pictures......

Here's a pic to show what I mean. Ignore the orientation arrorw, it's set to my local declination.

If I draw a line from center of compass to the 0, +90 and -90 of the declination scale, it doesn't intersect with the corresponding S, E, W marking on outer ring, but off by 1 or 2 degrees. So either the vial or the outer ring is misaligned, and if I were to set the declination according to the scale, 0 wouldn't be quite 0, and my reading would be off by a degree or two, or am I over thinking it?

I had to pull out my MC-2G to do a valid comparison and I don't see it. My declination scale lines up perfectly with the compass scale. That must be a bad lot of MC-2G units. That said, I notice in the picture the scales at E, W and S are all off consistently ~+1/2 degree. What would that mean?

Maybe if you contact Brunton they will send you a better one because it does sound like you found a bad run of them.
http://www.brunton.com/faq.php?pr=Compasses

Sorry but I do not get it either, have you tried to adjust the scale as hikermor suggested?



That would mean that someone has adjusted the compass to a declination of ~+1/2 degree.

--edit--
yes, the assembly is wrong

No, what Jzmtl is saying is right. His degree bezel and declination scale seem to be out of register.

On that model you adjust declination by moving the arrow that your needle is supposed to line up over.
The scale doesn't move relative to the bezel because it is part of the capsule base.

But again I am not sure if it is worth worrying about or if it is easier to just note it when setting your declination.

Like I have mentioned before, small hand held compasses are usually limited to about 2 degrees accuracy anyhow. It is both the local magnetic variation and the mechanical limitation of the instrument at work.
Hopefully small errors cancel instead of accumulate, which is why you try to eliminate systematic errors that would add up over repeated sightings.

For most work a compass like Jzmat has would be acceptable.
A 2 degree error works out to about 92 feet over a mile.

Yes, I see now, the "off" in your compass is actually annoying.
Mine isn't at all like that. The scale should be perfectly aligned.

a short video on declination setting
view from 2:13
http://compass-howto.com/%20/featured-videos/magnetic-declination/

Yes, I think I would find it annoying too if I had spent good money for a compass and found a built in error.
Even if it was a small error.

I doubt Brunton will send a new one because it was a Suunto MC-2G.