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A few more things to consider:
1. The TO 3000-1 *does* apply AGC voltage to the AM RF stage. A 10uf/6V electrolytic (C-35) is used to filter the voltage. Perhaps it is leaky and limiting the action of the AGC.
2. Orientation... can you rotate the radio to reduce the signal of the strong station, and increase reception of the weaker stations?
3. Building construction... Some older structures with plaster walls have an "expanded metal" type of support for the plaster... perhaps some of your walls are constructed that way and provide some shielding of the signals.
jr
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