deisign by LNK574

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I designed a pcb according PIXIs Designs.  I want to output 5V 300mA. the problem is 

1.  R17 was given 8.87k by PIXIs Designs. But to output the 5 V, I need to regulate the value to 5K.(I am not sure if the transformer is good enough, or some other problems)

2. When I turn the the Relay (450mW), the voltage at 5V testpoint drops to around 3.3V.

Could you give me some suggestions