It depends what diode you're using... Each laser diode has a different range of amperages it runs in... A lower powered yet highly efficient laser might be giving over 200mW at that amperage, while higher powered but less efficient lasers might not even lase at 128mA.
Iam usng an SLD1239JL-54 16x burner diode
Also, when you say "a bright red circle" do you mean it's projecting a large red blob instead of a focused point? What are you using to culminate and focus the beam? You know you need lenses etc, right?
Well Iam using the lense that comes with the axis laser housing module.
Also does anyone have a picture of their circuit with a heatsink? I have no idea how a heatsink is supposed to be attached.