I assume your 10K pot is a LOG pot and not a LIN pot? If it isn't, change it (to a LOG pot - remember your ear isn't a linear device) and you'll find the volume control might then work.

Pins 1 and 8 are unused in your schematic, but they set the gain of the op-Amp. Try adding a 1K2 and 10uF connected in series between these two pins and you'll get a surprising increase in gain.

The Datasheet for the op-amp provides a whole heap of examples at the back. The LM386 you have is a good, cheap, no-frills, minimal component count Audio device for playing with.