I received my developers kit yesterday and have been working with the hardware and software and things have been progressing quite well.
I tried connecting the ultrasonic sensor with the included inline voltage regulator and was getting a reading of 255 on the display. I checked the voltage from the regulator with a digital multi-meter and got a floating reading around the 1 volt range. I then connected a LM 7805 5 volt regulator and confirmed a solid 5 volt reading. i used this set up along with the ultrasonic sensor and everything functioned correctly.
Could I have gotten a bad voltage regulator with my kit? I'd like to use the provided regulator since it is a little more compact and streamlined than the 7805.