I designed a power source for my circuit using a 3V battery to supply 3.3V. However, when i insert my CR2477 battery into the battery holder, the voltage across the battery dropped to around 0.55V and the Vout at a miserable 1.15V.

 

http://img502.imageshack.us/img502/4373/98296351.png

 

Judging from your circuit drawing, I'd say the battery will not provide enough current for the job. Either the battery is dead, the load is designed for more than the battery can provide, or you have made a mistake in assembly.