Is there anything wrong with this PS design?

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Minimum load current? If I remember it correctly, an LM317 requires 10 mA of load current to maintain regulation.

Some version of the lm317 work with only 5mA of output current.
That allows R3 to be 240r. If 10mA is needed then R3 becomes 120r

Thanks for the help, working fine now... I would have had the board in bits if it wasn't for your advice.
 
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