Mike,

Put a 2200uF 6V electrolytic capacitor at the output end of the voltage regulator.
Also, always use thicker power supply wires to alleviate the situation a bit.

It's the brown out condition where the supply voltage drop in a very brief transit when the Omega 2 board demands more power. The Omega 2 board along really needs a stable 300mA power supply for a sustained period of time.

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