1. Make or buy a 5 V power supply. The 5 V regulator should have a heat sink for the short circuit protection to work. I really would not breadboard that part of the circuit. If the part gets warm, the breadboard could melt in that area. I'd solder the power supply on a PCB and add a LED "pilot light".
I would also add protection diodes. I'd put a reverse biased diode on the input and also fuse the input, so if power is connected backwards, you don't let out the "magic smoke". The fuse blows instead. Also put a reverse biased diode between Vin and Vout. This makes sure that any backfeeds go around the regulator.
Something like
https://www.sparkfun.com/products/10804 this would absolutely be ideal. It plugs into the breadboard.
The breadboard area around your "power supply", you have wires going nowhere.
Do the power supply right.
==
Spending almost zero time, the LED that you have is effectively shorted out and therefore useless. I don;t know what the specs of the ports on that chip is, but you need to make sure it can source or sink about 10-20 mA and size the pull-up or pull-down resistor appropriately.
R<= (Vdd-Vf-Vs)/Iled
where Vdd is the power supply voltage. Vf is the LED forward voltage (varies by color) and Vs would be Vc-e(sat) for a bipolar transistor. It's basically the voltage loss when the transistor or FET is fully turned on. I led is the operating current in AMPs.
--
The breadboard capacitance COULD affect the ability for the oscillator to work. Not saying that it will, but it is a potential problem.