After re-reading grumpy-mikes post i think i figured out what i may have done. I probably used the arduinos +5v constant pin as the base of the transistor. I didn't realize the servo library pulsed the pins, that would indeed create a problem. But i think with that simple change the circuit should work. 1a is alot of current, that be nearly 7W do dissipate! I'll look for a switching regulator.
Thanks guys!