I never built that one, but I see at least one error in the schematic. U1 has output pin 4 going to ground. Yikes! The *input* should be grounded, not the output. The board layout is ok, but if you were going by the schematic, that could be your problem. If you're noticing a toasty -- or even toasted -- U1, rewiring that piece of it should fix it.

Otherwise, the schematic seems to be ok, after a 90 second skim.