matbks:
Towards capacitors used on the LM7805, i looked into the datasheet and it recommends 0.33uF on input and 0.1uF on output.
I am using 2200uF(i've tested less than this and was not enough to keep voltage stable) on input and 0.1uF on output.
Did you check the TYPE of capacitors reccomended ?
Your origional photo appears to show electrolytics.
EDIT
You should have the 033uF and 0.1 uF in paralell with the electrolytics and should be ceramic.
You may be able to use a single tantalam instead.
Your origional circuit shows a 7012 regulator now you are saying a 7805.
An updated schematic is needed i think.