When using panning on a stereo track in an editor, there are usually multiple modes that can be used. There are modes that simply raise/lower the volume of the channels, there are modes that mix one channel into the other channel as it's panned, and there are modes that attempt to keep the "power" (think RMS) of the panning constant. Some editors do only one, the good ones let you do them all, and they all have there uses. So, head's up on that.
But for what you describe, I'd go one of two routes. If you can find an imaging plugin that's pretty nice, I'd go with that. The Waves S1 Imager lets you squeeze or expand the image easily and is a great plugin for this use -- just make the field more narrow and be done with it. Another approach that doesn't require a plugin would be to do something like this: (1) get two copies of the stereo file into two seperate tracks, so you have a stereo file in one track, and a copy of the same stereo file in the other track, perfectly synced. Then change the properties of one of the copies to be left channel only mono, and the other to be right channel mono only. Then hard pan the right channel to the right, and the left to the left. At this point, it should sound exactly the same as it originally did. Then do what you tried to do the first time, bring the panning in a little on both tracks. Each editor will be different in how you acheive this, but the concept is the same: get a mono track of just the right, and a mono track of just the left, put them each in their own track, and THEN pan.