Well im very new at this stuff and don't understand things that much, sorry
OK, listen up, so I don't have to repeat this information. You said that this is getting expensive but you weren't specific about what. The Q1 MOSFET is less than a dollar at Digikey. You need this FET (Field Effect Transistor) because these LEDs exceed the current limitations of the 555. The 555 turns Q1 on and off. Q1, in turn, turns LED1 & 2 on and off. You can think of it a relay of sorts.
There are only 2 capacitors on my schematic C1 is the timing cap while C2 is a small disk cap .01uF. It's used because the 555 manufactures recommend it when the pin 5 isn't being used. I also included it because my spice software that created my schematic doesn't like unterminated pins. This cap costs a few cents!
I will post an updated schematic that will include naming the Drain, Gate, Source pins of Q1. I will also include a basing diagram (pictorial) of Q1 so you will know which pins are are the Drain, Gate and Source.
R5 is a 5 Ohm - 2 Watt resistor. It's used to limit the LEDs current to 400 milliamps. The LR W5AM-HZJZ-1-Z LED can handle currents up to 1 Amp (Pulsed) at the expense of more heat and more than twice the battery drain. I will include R5 value for 800mA operation but I will probably shorten the pulse width too, as Steve suggested.
Heat sinking the LEDs is not an expensive proposition. It's just a matter of transferring the LEDs heat to metallic (usually aluminum) material. The manufacturers data sheet usually includes heat sinking info.
http://media.digikey.com/pdf/Data Sheets/Osram PDFs/LA_LR_LY W5AM.pdf
I'm sure that Digikey sells them too. Ask them, they should be cheap.
Chris
EDIT: I'm including the data sheet link for Q1. It includes the pinout.
http://www.vishay.com/doc?91307