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First thing to check is the frequency of the carrier oscillator. In LSB it should be 7.7985 MHz. If it's much higher than that, this makes setting the carrier-balance trimpot VR7 incredibly touchy. Might check VR7 first just the same.
Best way to check that crystal is with a receiver that has good frequency accuracy. Using a frequency counter runs the risk that attaching a probe will knock the crystal off frequency while the probe is attached.
When you checked this were you running a power mic? If so you might first try turning the mic gain on the radio and mic down. Sometimes when this happens background noise can appear as a carrier. Good luck.
Hello gentlemen and Ladies. I have the dreaded RCI-2990 receive issue where my radio gets distorted when people get close to my location. I found the C90 Capacitor, but I can not for the life of me find the C89 capacitor. Can or does anyone have a picture of the exact location of C89 ? Thank you in advance, Wes
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