Step 10Final Step!!
UPDATE: If you intend to use this as more than just a novelty item, a driver circuit is recommended. Here is a basic driver circuit that can be built for this project which will regulate the voltage going to the diode.
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http://www.flashlightlens.com/str/index.php?app=ccp0&ns=catshow&ref=accessories
I was pleased with the service although shipping was a little slow. They sell a good driver for $20. To me this seems a little steep but its a driver.
You could also get a nice driver for $26 here: http://hacylon.case.edu/ebay/laser_diode/Micro_FlexDrive.php or their cheaper driver here: http://hacylon.case.edu/ebay/laser_diode/LavaDrive1.php
I'm with you on the cost which is why i'm going to try to build this driver: http://fr.truveo.com/DIY-How-To-Make-A-Laser-Diode-Driver-Circuit/id/157974391
Good luck!