With any unbalance in the circuit you will have some carrier. Normally one needs to trim for lowest carrier in some way. I did that in my HW-8 mod: http://www.da.isy.liu.se/~mj/HAM/QRP/index.html which links to KL7R:s site. Or google for "HW8 Double Sideband Mod" and you will probably find it. The carrier went down some 20 dB re the DSB peaks for me. With more care even more should be possible. There are also IC:s for this (was it MC1496?).
/Micke




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