Righto, here's my method. 1 2L soft drink/soda bottle (I tried larger, 3L, juice bottles, but found them inconsistent), 2 cups sugar, half teaspoon of yeast.
With a funnel, pour sugar into bottle. Add two cups cold water, one cup hot water, one cup cold water. Give the bottle a quick shake or shwish to stir up the sugar a little. Let settle. Add yeast, DO NOT STIR! Screw lid-with-hose on top...I try to avoid letting the yeast mix whilst doing this, but it matters not if a little sinks. Leave for an hour or two. Watch bubbles.
Now, what do you diffuse with? I get the idea from your post that you have an open hose, straight into your tank... This won't work. Popular methods include plumbing your hose just below the impeller in a powerhead/filter (like
THIS ), placing the hose below a filter intake (don't use HOBs, they gas the CO2 off before it can be used), or you can spend a dollar or two on a glass diffusor (go eBay) or Hagen ladder, etc. When you drill the lid of your bottle for the hose, use a drill a half-mil or so
smaller than the hose, cut hose at an angle and use pliers to pull it through. It will be air tight and no need for gluing or anything.
If anything, all these responses should teach you one thing; there's a bazillion ways to do DIY CO2, it's just a matter of trial and error. I, like everyone else, swear by my particular method, even though I know it's not the be all and end all...