That regulator has about 2.2V drop-out at 1.5A, so the greatest output voltage you can get from 5V input is 2.8VAlso you are missing decoupling capacitors - regulators in general need them to prevent oscillation.
I do need to add an Heat Sink and see if its good. I'll try that later tonight see if it works.
He's good on drop-out, his source is 9VDC.
Isn't the center pin of a regulator normally connected to ground? At first glance I'd expect to see a wire going from the center of the regulator to the ground of the battery.Also, I'm very curious, what program did you use to make these graphics? Fritzing?
LED pulls 3.6v and 1Amp (works fine with 1.5amps)