Yeah well, I'd suggest against using that diode.
You can, however, practise extracting the diode out of the sled.
It'll require prying it off the main assembly, then removing the diode from it's heatsink with pair of pliers.
Videos on youtube can be found showing you how to do that.
You can save those diodes for later use if you want.
But for now, I'd suggest getting a PHR-803T sled, it's from HD-DVD addon drive for Xbox 360.
It contans a bluray diode which is capable of 100mW, more or less, at 100-110mA of constant current.
It's fairly cheap too.
You will also need diode housings, I suggest buying bulk of ten here:
dia 12mm housing /5.6mm diode houisng with lens /10 pack [OL1230H] - $20.00 : Welcome to O-Like.com, Your source for laser products
You can never have enough of those things... I just used last one this weekend.
Anyhow, you will need a vice and some sort of tool to pressfit your diode into it's pocket in the housing. Back end of this housing is good for this purpose , but only once since it bends and can't be reused.
You can get machined diode presses from member named FlaminPyro here, check out the Laser Pro Shop.
Don't forget. Patience. Key to success here.