I found the problem. I was happy that the nozzle was letting me take care of pitch and roll with only two servos... Not any more. it took me tens of tests and some super deep thinking to figure it out. The slight flexing of the nozzle in the Y axis when X servo was pulling and vice versa was causing the trouble. I added one more servo to pitch to counter the existing servo and the wobble almost diminished. Of course, you never until you do the field test and it will still need some fine tuning. Before going forward I need to get the landing gear in so I don't damage the servos outdoors. Attached the latest pic.