The PS1 is a split supply, that is - it provides a positive and negative voltage, ex. +16V, -16V and ground. You can setup the supply to provide just +16V but you would only be utlizing half of the power supply.
As for using other caps and diodes, yes this fine if you can make them fit.
I am working on a few new voltage regulator designs which I hope to have available this Summer. These will be single supplies.
Ron
