Standalone Arduino on 6 AA: voltage drop from diode, ideas to circumvent?

CaptainJack:
However the diode creates a voltage drop of about 0.7 Volts, so a fully charged pack results in 7.6 - 7.8 Volts for the 7805. Now the 7805 will stop functioning properly when input voltage drops somewhere between 7.0 and 7.5 Volts ...

Watch this, all is revealed: