You still don't seem to realize that the two rails at the top and bottom of the breadboard are continuous.
As you have linked the two together, you have your input and output of the voltage regulator on the same rail..
The LED is now connected without the resistor as the resistor is in parallel to the 5v rail, and your diode is the wrong way round.... I have done your circuit in "fritzing" so I will post it a soon as I get to work!! What ever you do... Don't connect up the power to the board.