You don't need to know the total circuit calculation that confused you, if you want to know more about that you can find a physics text on electricity and magnetism or a book on circuits.
You should know Ohm's Law V=I*R. This is valid for resistors. a better way to right it is I=V/R. So given a voltage from a battery for example the current allowed through a resistor will be the voltage divided by the resistance in ohms. So if the voltage changes, the current changes. One definition of an Ampere unit of current is 1 Ampere (A) is equal to 1 volt (V) per ohm (captial omega). Parentheses are abbreviations for the units.
A resistor is a component that opposes the flow of electricity. More technically (Usually they are made of a material where the flowing electrons run into obstacles where some of there energy is absorbed.)
One method often used to describe and understand the flow of electricity is like a hose of flowing water. The voltage is like the water pressure. A resistor is like a kink in the hose. Current it like the amount of water flowing. The kink lowers the pressure coming out of the kink (resistor lowers voltage or has a voltage drop, if you have a simple circuit you can measure the voltage across(a probe on each end) a resistor to find the voltage drop). This decrease in pressure limits the amount of water flowing out of the kink in the hose. If you increase the pressure source of the water flow more water will flow through the kink (increased voltage increases current through a resistor).
A diode has a voltage drop, but doesn't limit current the same way that a resistor does. It works much differently and would be a discussion in solid state physics to try and understand better. I don't know the specific relationship between current and voltage (drop) across a diode. I just assume the diode does not limit current and would allow as much as a battery could supply if left unregulated. The voltage drop of the diode is the voltage needed to allow current to flow through, again a detailed explanation requires knowledge of solid state physics and semiconductor devices.
Think of a diode like a one way water valve that will not let water flow in one direction, but will let water flow in the other direction, but only when the pressure is above a certain threshold. Interestingly, if put a kink into the hose that had enough pressure to let water flow through the valve, regardless if the kink is before or after the valve, the pressure that the valve will feel will be lowered. If the kink is too tight, the pressure will drop below the point where the valve will allow water to flow. Again this works the same in a circuit, a resistor before or after a diode will have the same limiting effect on the available voltage to the diode. A complete driver circuit also has this voltage reducing effect hence the need for a supply voltage equal to the sum of the voltage drop of the driver and the diode.
Using the water hose metaphor, a battery is like a water tank. It can let as much water flow as the hose attached will let flow. So a battery will try to provide as much current as the circuit will let flow. I say it will try because there is a maximum amount of current that can flow (you don't need to know this: I think it s due to the battery's internal resistance).
When I say the phr803T requires 5 volts I mean that it will have a voltage drop in the circuit of 5 volts. This means that if the total voltage (drop) of each component (the sum of all voltage drops) in the circuit is less than the supplied voltage (battery voltage) the diode will not let current flow properly.
To see this effect you can set up an experiment with a DDL driver and a dummy load (a circuit made to simulate the voltage drop of a laser diode in order to set current output from a driver). My 803T dummy load has a voltage drop of about 5V and I think the DDL has a voltage drop of about 3V. Now, my dummy load has a 1 ohm resistor on it. If I measure it's voltage drop I can figure out the current flowing real easily. Using Ohm's law I = V/R so I = (measured voltage drop) / 1 ohm so basically the current in A is equal to the voltagte in V. If I supply the circuit with say 9V I can adjust the current with the driver and measure say .100V across the 1 ohm resistor. This means that .100 A = 100mA is flowing through the circuit. If I supply the circuit with something less than the total voltage like 6V, the voltage drop measured on the 1 ohm resistor will be 0. Now I can measure the voltage across the diodes in the dummy load and measure ~3V which is not enough to let any current flow. This implies an interesting idea if you are unfamiliar. A voltage difference does not imply current flow. This makes sense, if you have a AA battery and measure it's voltage without a circuit attached it should say 1.5V, but not current is flowing.
An LM317 is a component that will either regulate voltage or regulate current, but only one at a time. The circuit design determines which it will do. In the DDL driver circuit the LM317 is being used as a current regulator as the voltage is pretty well regulated (from going too high, not too low) by the batteries. The first few posts in the DDL driver thread discuss this I think.
The DDL is a well tested driver circuit. The resistor values in it are what tells the LM317 what current to allow. This is what the pot (potentiometer = variable resistor) is used for. You can make a fixed current DDL by using a fixed resistor instead of a pot.
Ok I said a lot. I hope I don't confuse you
, but there's alot to take in. Questions are welcome.