If you have an oscilloscope look at your control pulses from the PIC to the servo as it moves. If you see that the wave form (1~2ms pulse) is wiggling around or changing amplitude then you have a power supply issue. Do as I suggested above, get a 9v power supply (AC/DC) and use TWO 7805 regulators in parallel for the servo ONLY. At the servo use 470uF across power and ground. Look at the scope again and make sure you see a "cleaned" up signal while servo is in motion.

Nick