interesting, i'm going to test it some more. tbh i'm pretty ok with it turning to angry noise past 3 o'clock as i feel like most of the effect lives in a pretty small range of output. i'm also going to look at some mods, and go back to some earlier LM386 projects to see if i can find anything worth tweaking. if you ever do feel like cracking it open i'd be interested to see what changes can be made.
according to the datasheet (http://www.ti.com/lit/ds/symlink/lm386.pdf) it's also possible to adjust the overall gain by adding a resistor to the capacitor between pin 1 and 8 on the first IC - this may be what you have changed if you grounded pin 1? or it could be pin 7 grounded which is recommended in the datasheet but not on the vero as far as i can see. bypasses the unused input.
i wonder what happens if you play with the gain on the second IC.
according to the datasheet (http://www.ti.com/lit/ds/symlink/lm386.pdf) it's also possible to adjust the overall gain by adding a resistor to the capacitor between pin 1 and 8 on the first IC - this may be what you have changed if you grounded pin 1? or it could be pin 7 grounded which is recommended in the datasheet but not on the vero as far as i can see. bypasses the unused input.
i wonder what happens if you play with the gain on the second IC.