The Ice Bulb is very cheap and simple to make and the result looks amazing. This instructable will be to basic for a lot of people here, but surely someone will find it a fun project.
View the video
About the pictures: My camera is not able to replicate all the light from the LED. Therefore you will see some large patches of solid white. This is not how it looks in real life. Trust me, it looks a lot better.
Step 1: Attach wires to LED with tape and stuff it inside the balloon.
Stuff the LED inside the balloon but keep the wires on the outside.
Now is a good time to test that the LED actually works. You do not want to find out that it is faulty after it is frozen inside the ice...