5V conversion help needed

I've also built a few of these and produced a "How To Guide" as well, here's a few photos which might help.
It seems to me that you are still supplying 12v to the gauge/regulator and have not totally isolated the 12v supply from the printed circuit. Photos are showing 1964 Dodge Dart instruments, with the regulator built into the fuel gauge.

On yours, I interpret the pin with the red coloured wire as the former 12v feed to the gauge, cut that pin off so you are guaranteed not feeding the gauge 12v...
D_0268A.jpg

Then, insulate the casing to prevent electrical contact... D_0269A.jpg

Now, insert brass bolt from inside of circuit board and connect brass spade terminals externally (as shown) to create a 12v supply to your NEW regulator, completely independent of the gauge...
D_0270A.jpg

Then, connect your regulator (I eventually housed mine in a headlight relay can) and conduct a test...
D_0272.jpg

Also, feel free to email me and i can send you a fifteen page PDF copy of the "How To Guide"...