I finally took the time to see what was going on here. Alec answered it. I"ll expand a little. YES, you should get a larger peep. You can use one of several. G5 Meta peep comes in sizes up to 5/16". Fletcher goes as large as 1/4" to my knowledge. You can always try a Specialty ball peep which accepts different size threaded inserts. I've used them all or should I say USE them all and my choice would be the Fletcher simply due to the cost and the fact that they all do the same thing.
Of course all the info you are getting assumes you are not using a peep with a tube aligner. If you are then you need to just get a larger one.
It's hard to say which size you will need. Such things as draw length and how far the peep is from your eye, and the distance between the peep and the sight all have a bearing on which size to use. You really need to go to the shop and try them on for size. However, being as your eye will almost always want to center in the peep this is one of those cases where bigger can be better. You may lose a bit of accuracy by having one too large, but not as much as some may think. You just have to play around with getting it to the height that allows you to anchor and shoot in a consistent manner.
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