Wow that seems rather odd.... Maybe your iron is to cold? Or the solder to thick? You could make sure the oscillators legs are clean. You could use fine sand paper (speaking 1200 grit+ here) to clean any crap off it, just lightly run the sand paper 1 or 2 gentle swipes is all. Also have you wired the oscillator correctly? the pin that has the squared off end isn't connected.
I have put away the MD2 that I done for Game Traders, however I have another MD2 on it's way hopefully be here soon. I do have a dead MD2 here that I can take pics of the board where you can test to be sure you have disabled the relevant pins.
What revision board have you got? It shouldn't matter as this fix I have done is the same/similar as MD1 (uses 2 pin oscillator) as well as Nomad (as I have put up elsewhere on these forums).