It looks like a voltage regulator to me too.
I'd recommend you determine if one lead is connected to ground, then measure the input and output voltages in operation.
It's not unusual for voltage regulators to run quite warm, but if you find the output voltage drops over time, this may be an indication that is going into thermal shutdown.
If it's always low, then it's a plain overload (most likely) and if be checking to see if the output is shorted. If it is, start by investigating tantalum capacitors (the yellow rectangular capacitors).