Sorry for the late reply but we got hit by a severe snow storm and had to stop working on my projects.
Anyway this is how everything is connected:
Terminals 1 through 4 are VCC, Ground, digital pin 11 and digital pin 3 respectively.
The servos are MG995.
The 5V is coming from a DC adapter with 1A max.
I got a multimeter with a "fast max" mode that can read current spikes, it showed a maximum reading of 2.1 Amps !!
And Arduino resets then. A single servo draws about 1.7A when it starts and more than 2A when it overshoots. But settles on 0.2~0.3 A.
So yes, it brownout as you mentioned.
I am thinking of replacing the servos with smaller ones.
But until I get them replaced how can I solve this problem?
I believe using two supplies one for Arduino and another for the servos would solve it. but is there a better solution?
Like can I limit the current they are drawing or something similar to that?
(I don't have any large capacitors right now to put across the supply and can you explain how that helps?)
And one more question, if I installed another supply for the Arduino and let the servos operate on the 1A one? is that dangerous? can they damage the supply since they will draw >1A current at some point.