The problem was that I'm such an electronics newbie that I didn't know where to start. After reading through many web pages and forums, I was able to put together this Instructable. I wanted to have the information I learned all in one place, and easy to follow.
Comments and suggestions are welcome and appreciated as I'm still trying to learn all this stuff.
Fellow Instructable member, Janw mentioned to me that it's always a good idea to add a capacitor or 2 near your power. He mentioned using a couple of 100nF capacitors should work. I'm very grateful he pointed this out to me, because my first production circuit that I'm building upon this circuit, was having a little bit of strange behavior. So I hooked up one 10uF capacitor near my power, and it started behaving correctly! I don't know why it didn't affect my 'blinking LED' test, but I do know that I'm grateful for Janw for pointing this out to me. Thanks Janw.
Building upon the previous edit, I wanted to mention that Instructable member, kz1o brought out some more information regarding the capacitors. Please see his comment below, dated February 14th, 2010 @ 10:52 am.
Update - This Instructable is on Hack a Day!