EBJUSTIN, I had the exact same setup you are using, with the +5v regulator into the purple wire setup. It worked, the only thing I didn't like was that for some reason my power draw would vary quite a bit, at some times it would be only 180ma, but sometimes it would draw up to 900+ma!! Perhaps it was my USB devices.
I finally gave up on it, and am instead using my regulator to power my GPS unit

. I will follow your results closely to see if you resolve the USB power issues.