Lifting the ground like that has potential safety hazard to you under the right circumstances. I lifted ground on some amps in my last house, and pretty much traced the ground loop problem to the way the cable company grounded their installation (separate from the house's main ground) or at least I assumed that was the cause, it was a rental so had no real interest in resolving it as I wasn't staying. No issue in my current house. You might search down and solve the ground loop issue or just take your chances
There is a good thread on various causes/solutions to ground loop hum somewhere around here....try a search.
ps as far as the sensitivity setting, if you're getting full power out of the amp (can you achieve clipping?) then I'd think you're fine.