Félix Díaz wrote:
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If you are using 7805 in TO-3 you can replace it for LM 323 that suplies 2A

A regulator only supplies what is demanded, up to a certain limit. If the demand is 500 mA, it does not make any difference if you use a regulator that can supply 1A, 2A or even 10A. The power dissipated remains the same, i.e.: (Vin - Vout) * Iout.

The only way to reduce generated heat is to lower the input voltage and/or the current consumption (or use a SMPS).

Regards,
Rob.