I received the following response to an email I sent to Nikon. I like this scope a whole lot better now.
From Jon B. LaCorte
"Thanks for your email,
The Coyote Special reticle is designed for long range bullet drop compensation and for bracketing moving targets, hence the open circles.
The reticle is not designed to be used as a rangefinder, however, the subtensions of the reticle may allow you to use it for general rangefinding.
The center circle is 3 inches outer diameter at 100 yards, which means it would be 6 inches at 200 Yards. This would represent the vital zone of a coyote at that distance.
The second circle is 2 inches, which would be 6 inches at 300 yards, again the approximate size of the coyotes vital zone.
I hope this helps
Thanks
JL"
Based on a followup email, this is accomplished at highest magnification. Very cool feature.
Now to get some rings and bases. I must say that the 4.5x being the lowest magnification is concerning to me at close (in my lap) range. So maybe I will get a side mount thus leaving the iron sights usable. Or maybe I'll do as the AR guys do and put a red dot on top.