Need Help Understanding my Spotting Scope

I just bought a Bushnell Trophy 20-60X65mm Spotting Scope.

When I go to the higher powers the size of the image at the eyepiece (I guess the iris) gets very small and I need to be right up tight against the eyepiece.  I wear glasses and this forces me to press the lens of my glasses against the rubber ring around the eyepiece.  OR, I can take my glasses off and that gives me a tad more eye relief once I refocus it ....

Question is .... is this the nature of the beast or did I choose poorly?

Are there other spotting scopes that give you more eye relief AND retain a larger image (iris) at higher power.?

It's both the nature of the beast and a poor choice.

Bigger is not always better when considering spotting scope magnifications. Extreme magnification requires extreme objective lenses to produce a usable exit pupil. The inability to hold them steady, narrow field of view, small exit pupil (poor light & critical eye relief), and heat wave distortion are all results of extreme magnification combined with inadequate objective lens size.

Stick to the 15-45 power range combined with the largest objective you can stand to pack.

Here are some really good spotters that perform like you would expect them to.

Kowa
Nikon XLII
Bushnell Elite

Probably one of the best and easiest spotters to use is the Leupold Gold Ring 12-40x60.  It has the largest ocular and the best eye relief of any spotter I know......but they are pricey.

Leupold Gold Ring

I picked that one more for price than anything .... for most of what I will need it for 25-30 power would be fine.  The main use is going to be at the range (100 yard) to help my tired old eyes see bullet holes when I use a rifle with a lower power scope 

Which of the scopes that you listed (if any) come close to the price of the Bushnell? 

I looked at some of the alternatives .... most were more than I want to spend for a spotting scope that will only be used at the 100 yard range during daylight hours.

I did find this one though .... specs wise it seems a little better

http://www.riflescopes.com/products/300119/burris_20-60x80_l andmark_spotter.htm

Here's the bushnell

http://www.riflescopes.com/products/782065/bushnell_20-60x65 _trophy_spotting_scope.htm

Key comparisons are

Bushnell .... eye relief   14mm is the only one listed, bet thats at 20X,  exit pupil 3.25 - 1.1

Burris ... eye relief  20.32mm - 15.24 mm, exit pupil 4 - 1.3

Both offer the same magnification range, a hard case and a tripod

What's everyones opinion of the Burris (compared to the bushnell)?  Are there any other choices that will better fit my needs and still come in at say $300 or less?  I'd probably go to $350 if it bought me a SIGNIFICANT improvement.

That Burris is perfect for what you are doing.  The monster objective is the key and since you are primarily using it at the range it won't be a problem.