If the source's volume was set too high it would clip at the input of the LM386 and sound like static except I would expect it to be loud. You write "there was a LOT of static playing" so may be this is it. Try lowering the output volume on the laptop or iPod.
There is a lot it could be. If I was looking at it the first place I would look after lowering the input volume is the jack and its wiring that you are plugging into the source (LT or iPod). Next I would use headphones to make sure there is audio out of the source. If this checks then I would make sure all of the grounds are connected and look carefully at the NC pin 7 in the data sheet. I've had a rash of NC (not connected) and "reserved" pins that have to be connected somewhere for the device to work.
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If the source's volume was set too high it would clip at the input of the LM386 and sound like static except I would expect it to be loud. You write "there was a LOT of static playing" so may be this is it. Try lowering the output volume on the laptop or iPod.
There is a lot it could be. If I was looking at it the first place I would look after lowering the input volume is the jack and its wiring that you are plugging into the source (LT or iPod). Next I would use headphones to make sure there is audio out of the source. If this checks then I would make sure all of the grounds are connected and look carefully at the NC pin 7 in the data sheet. I've had a rash of NC (not connected) and "reserved" pins that have to be connected somewhere for the device to work.