Last thing first. Yes, C1 has an effect. I think the idea is this. There is (supposed to be) a zone extending away from the pitch antenna. At the antenna (i.e., touching it) we have C7 (3 octaves above middle C) and moving the hand out 18" the note drops to 0Hz. Any further distance results in silence. I think what C1 is supposed to do is compress and expand this zone so the 0Hz point can be closer than 18" or further away.
HOWEVER, if the (frequency) coils aren't zero-beating properly, if you move out past 18" you get the sawtooth. So by zero-beating the coils (at the appropriate place!) you should be able to set up the 18" zone with nothing beyond.
But for me, while C1 does expand and compress the zone, it does it VERY SLIGHTLY -- by maybe just an inch or two.
Clearly something is wrong. I've tried all sorts of settings with the coils (using the instructions in the construction manual, of course).
I just can't seem to get it right. Either I have some kind of zombie force field in my workshop, or a component part is going south, or I need to keep fiddling with the two coils and the variable cap (C1).
If you can think of anything else, please don't hesitate. I don't recall ever having this problem before. I've always been able to get the "silent" point (i.e., beyond 0Hz) at around 18" like Bob specifies.
Rory