It works by superimposing an AC voltage generated by the capacitor microphone on top of the DC voltage generated by the power supply. The power supply is dead quiet right before the resistor and I mean dead quiet. Also, my parasitic AC wave is at 60 hertz. Yes, I know that 60 hertz is the power supply rectification frequency but the power supply looks OK right before the resistor. Also, if I disconenct the transformer and leave the circuit charged, I still get the same problem. I tried discharging the power supply caps too and still have the same problem.
I tried putting an integrator capacitor in the feedback loop but it didn't do much other than roll off the high frequencies.