Is your transformer rated at 18V RMS, or is that the peak voltage?
Keep in mind that it is only rated at 500mA. It is not too commonly known that a full-wave bridge rectifier with a capacitor-input filter (as you apparently have)
draws about 1.6 times as much RMS current as the available output current, i.e., with 550mA DC load, you need a transformer rated for at least 900mA. Some documents I've seen say the factor is 1.8 instead of 1.6.
I think you are overloading your transformer.