Is he any better in different environments? Like..out of his cage and such? If he bites in the cage, like mine does, he may not like you around "his" stuff. They also recommend you don't put a mirror in his cage.
If not I'd say it's out of fear. Then you would need to take the steps on hand taming.
See: http://www.bellaonline.com/articles/art37897.asp





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One second he'd be giving kisses, the next, he's really biting you. You can usually tell by the look in his face though, right before he bites.
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One thing that I noticed is that Bailey, my tiel, would be much more curious and willing to step up when he was on or near the ground. Every now and then I take his cage outside to hose the bottom and he'll just be the sweetest thing, trying to cozy up to me through the cage. There's been speculation that birds, like pack animals, can more easily be tamed when they are clearly subordinate - like having their cage low to the ground. I also have to "chase" Bailey around his cage to take him out, but I simply gave up with that. I found that it infliced fear more than anything else. 

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