Larry:
This one will work. It's more parts, but it'll work.
I can probably get this done with a parts cost under $5.00 in small quantities, but it'll be a challenge -- oddly enough, it's buttons and knobs and circuit boards that are the price drivers here: transistors and resistors are dead cheap.
It'll be easier if I can go to surface-mount components, because then the board cost (which is a big price driver) will fall.
If you look at the PCB layout, you'll see that while I could scrunch things up a bit, most of the space is taken up with transistors and resistors.
If I go to surface mount S1, C1, R7, Q2 and D1 all stay pretty much the same size, but all the other components get way smaller. The board stands at about 2.5 square inches right now; I could probably bring that under 1.5 squares with surface-mount components. Possibly less than 1 square inch if you want an off-board switch and go with a fixed flight time (R7 adjusts the flight time).
So -- how are you at soldering?