I have some issues with Piccolo SD64 too. My A2000 with Blizzard 060 works perfect with Picasso II+, but when I put Piccolo I have problems:
1. Under CGX4 my system is unstable and lockups in OS 3.9, in Games, P96Speed
2. Under P'96 is better but Amiga is still unstable,
3. The best solution is OS 3.1 + P'96, but after few hours my system boots and rests in the loop.
So I think this is hardware problem I think it colud be dry joints. Try to make reballing of card.