Hi All and Tim,
I finally got back to the project. Beefed up the grounds, still at one volt. Removing the output load, the regulator jumps to 3V, and reconnecting it causes the regulator to drop back to 1V.
I have much firmware to write and wanted to get to it, so I decided to bypass the regulator and run the system from a 3V bench supply. Glad I did!
Turns out that one of the chips was on the board backward! At 1V the current draw was 45 mA, at 3V the draw is 1.7A. This is no doubt why the regulator folded back to protect itself. Fixed the backward chip, and everything works properly. My guess is the regulator would have worked fine with the layout as it is had the backward IC not been there.
Thanks for all your help.
Scott