Hi,
Your headline talks about Arduino, but it´s just a voltage regulator. It may be used with an Arduino device, but it may also be used with million other devices.
Generally:
You need to read the datasheet(s). It makes no sense that we read the datasheet and "copy" the informations here in this thread. I´d say no one has all dataheets with all the information in mind. So we need to read them, too.
Anyways: Some basic information:
* datasheet says max operating input voltage is 12V (instead of the written 16V)
* Your schematic says 16V/500mA, but this means 5.5W of power dissipation. This is too much for the tiny device. Expect no more than 1.5W.
--> either reduce the current or reduce the voltage
To the schematic:
* F1 is useless. It will never trip.It just increases dropout voltage.
* D2 type is missing
* what is "RAW"?
* U2 name is not the exact device P/N. Package type is missing.
* "resonator type" information is redundant.
1) a 7805 can be used with heatsink (for full 16V 500mA). The typical schematic is given in every 7805 datasheet.
Check if a breadboard is suitable for 500mA.
2) Either one needs to read the datasheets (usually "ordering information" section). I guess: Manufacturer, package, current rating..
3) I guess no one of us can answer this reliably. You need to aske the one who has drawn the schematic. We can just guess: reverse polarity protection. Voltage drop???
4) ??
Klaus