UPDATE: I change the C1 cap to 104J cap and I actually got the servo to mimic the position of the pot but only half of the radius of the pot. What I mean is that the servo will respond until I twist the pot past half way and the servo just jitters around. Let me post now exactly what I have.

My new servo specs:
Motor Type : coreless motor
Gear Type : All Nylon Gear
Dead Band Width : 2 usec
Connector Wire Length : 150mm
Stall Torque : 1.5kg/cm at 4.8V
Operation Voltage : 3.0 - 7.2Volts
Dimension : 22mm x 12mm x 29mm
Connector Wire Length : 150mm
Operating Speed : 0.12sec / 60 degrees (4.8V no load)
Temperature Range : -30 to +60 Degree C

Any ideas on what I can do to tweak this to work correctly?

 

This should work:
http://www.sentex.ca/~mec1995/gadgets/servo4.htm