The damage system is weird. I do more damage with the hunting rifle (14 dmg) than the chinese assault rifle (33 dmg). Its also insanely inacurate.
Well, I got to Rivet City and promptly lost myself two or three times. It seems I skipped the whole "Galaxy News Radio" part of the main quest by going to Rivet City and talking to Doctor Li. Weird, and I hope I'm not too close to the ending of the main quest.
PS: Never EVER use the rocket launcher in VATS. You will most likely miss and waste a missile.