it says the power supply should be 1000ma max, I'm confused why it would have a maximum? is it saying not to pull more than 1000ma through the circuit? or a higher ma rated power supply is bad for it?
That's a complete misnomer - providing you have sufficient current to meet that DRAWN from the supply the circuit will work. If you try to draw more than the stated current you will probably overheat the regulator and it will shut down.
Reading this will fill you in on the complete power supplies aspects, plus the 1000 ma spec was for several units being tied into it, seems like your simple board would only see ~25 ma current pull .
Sooooooo . . . . the shown power supplies degree of Blue prefiltering capacitors are overlill for your meager power needs.