Circuit amplifying a position sensitive detector
The cap has to go.  The diode needs to be reverse biased, and with the cap in place, its not.  Do you have the Anode going to ground, or the cathode?  It should be the anode.  Also, R1 should probably be removed.  Your photodiode is functioning as a current source which will generate a voltage through the feedback resistor alone.  R1 does nothing but generate another voltage drop which will lower the back biasing of your photodiode.