Here is my second recommendation Lee, if you can do it, carefully open the trace between Z2 and the ambience switch connection by putting a small cut in the trace. An Xacto knife blade width will do, just to open the connection between the pin 1 output and the ambience switch. After you confirm the trace is open with your ohm meter, then bridge the open trace cut with about a 200 ohm resistor. Try to make the cut and jumper closer to the Z2 end of the trace than the ambience switch. My hunch is that this will kill the oscillation since you said it got better with the addition of the 33 pf cap.