I thought it was a fuse and shorted it that when the IC blew up.

The 7805 is actually the ic to the bottom right of the pic.
The burnt IC is what actually supplies the power to the 7805.

The IC is taking the 15-18 volts a/c from the transformer converting it to d/c and sending it to the 7805 guess I should supply 12 volts directlly to the 7805 and see if the pic boots up.