The diode is not mandatory, it's just for polarity protection - as you can see, it is just between positive and negative. maybe you put it backwards!? You can just get rid of it, it has no relation to the sound path.
I used that layout too - just a couple of changes like R5 position and so on, but yeah it should work - check 7805 orientation, and voltage at pin 5 (I got 4.9V from mine)