The black and red are interchangeable on four conductor, and will allow you to split as you wanted. My guess is a bad earth. Double check the jack socket and main ground wire, I'd be tempted to replace the wire with a new one. You'll need a powerful iron to get a good earth on the back of the pot 100w works great, but anything over 40w is OK for this. Anything less you find that the solder is hard to melt because the pot is acting as a heatsink taking all of the heat from the iron!
Good luck - my Nailbomb doesn't have any problems, some of the Nailbomb clip that Tim did had a JCM800 at full gain, with a TS9 AND a Beano treble booster on at the same time....wasn't noisy!