I just picked up a TSL two days ago, and while I haven't had it long, I've already taken it out jamming a bit, and I've had no trouble getting it to cut. So, try the following:
-TURN OFF THAT DAMNED TONE SHIFT!!! [/yelling] Seriously... I know it's "cool" to scoop all your mids out when you're playing "heavy" music, but the reason people started doing that was to "darken" the sound of the distortion anyway, and the lead channel on my TSL is plenty dark as it is. As far as I'm concerned, that button has one function- to facilitate "layering" tones by filling different areas of the frequency spectrum- i.e, leaving space for the leads. Try this... I used to scoop my mids too... I learned.
If you need more punch, try some of the other suggestions below.
-cut your gain. It's counter-intuitive, but a cleaner tone will usually sound heavier. My rule of thumb is to back off the gain until it's still nice and crunchy when I'm strumming, but when I'm palm-muting it tightens up and is really clear and chunky, but not fizzy and "crunchy." Scott (Vwall) tweaked the bias a bit on mine and it seems to have a bit extra gain over a stock TSL, so take this with a grain of salt, but my "lead" gain level is currently at a touch over 7, and I'm actually thinking of backing it off a little further. You'll be suprised what this can do- it's counter-intuitive, but give it a try.
-Try more presence. If you'd read the manual
you'd have seen that it boosts the upper mid/lower treble frequencies that our ears percieve as helping the sound "cut" through the mix. With that gain at 10 this could be painful- at 7 or so, it ought to be nice.
-Once again, boost the mids... and then listen to your tone in the context of the band. You might not like it when you're just riffing away, but if you cut out all the mids, you're just going to get lost in the mix. With them, I think you might like what you hear around the bass, drums, and rhythm guitar.
Another thing that might help is if you could post your other guitarist's settings... With two guitarists in a band, each individual tone is less important than the way the two tones interact. You two should sit down some time at a moderate volume and just play with your tone controls until you get a sound that compliments the other's nicely.
Let me know if any of this helps.