7805 trouble

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And the slowing down fans occur only when the LCD is connected, not when you run the reg. without load? Sounds like it is current limiting, but that would mean that the LCD is faulty, or that you have connected it wrong in this case, but not when testing it separately. Could still be a faulty reg. too, I suppose, that seem to work under no load, but quickly drops when loaded.

Try loading the regulator with resistors and see if it can keep up the voltage at the output for reasonable load currents.

BTW, What type of 7805 are you using? The 78L05 for instance can only output 100 mA. How much is your LCD suppoed to draw?

Edit:

Just saw your edit. :)
 
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