On the Arduino, each pins can run a maximum 40mA and 300 mA in total
No 200mA in total, and even that will damage your arduino.
As to the circuit there is no decoupling on it at all, not even on the regulator output, this is vital:-
http://www.thebox.myzen.co.uk/Tutorial/De-coupling.html
By the way this section is for when you have finished something and want to show it off, not for project advice.