Hi, sorry for not being so very responsive. I have attached the PCB file ( i dont have schematic ). There is a MAX487, Nokia 6100 screen, a Demux IC and the PIC controller. The regulator gets hot even if everything is detached other than the controller.
Now to answer the questions:
The circuit actually works fine so i am assuming its connected alright. I get 5V output from the regulator's 3rd pin.
I have not connected any traces from regulator with my PIC controller IC other than the two VDD's and VSS's and attached a 0.01uF cap on one side.
I have caps on the regulator (both 10uF)