Just for your information, you CAN use a scope or red dot sight on a rifle with a fixed front sight. With a magnified optic over 4x or so the front sight will not be visible at all.
That said you can swap the fixed front sight base, for a low profile gas block with a rail fairly easily.
This is what you want, clamp on low profile gas block w/rail on top for gas block height folding front sight.
http://www.brownells.com/.aspx/pid=2...-M16-GAS-BLOCK
edit; you want a .625 gas block for a skinny barrel.