Should work. Personally I'd go for 12 ohms resistor, just to be on safe side at around 100mA, instead of 125mA you're giving to your diode.
Looks good.
It actually might be in good focus, but your eyes have very difficult time seeing the 405nm light. It's why the dot appears much larger in your vision, than it actually is.
If you're talking about actual focusing problem, then I dunno, try different lens?