What i want to do is Create a Voltage Regulator that will allow me to go from 1.1v to 3.0v.
I have seen Power supplys with faders and dials, but I dont know what parts I would need to step down a 5v supply from USB to power the laser to a max 3.0v aswell as ajust it.
Before suggesting anything, we would need to know how much current the laser draws.
Also, are you powering the Laser Diode directly, or does it have its own driving electronics? Lasers are a ***** to drive; they need special current-sensing and protection circuitry. It is NOT just a matter of hooking a DC supply to them!
Where did you see this laser cutter? link? You need 3.2 volts for the laser diode to light, but needs 30-50 mA of current to be bright. Little skeptical of the cutting power of a laser diode, but it would be cool. I've burned out a few laser diodes trying to increase the output, and have found that it happens real quickly.
This page has everything (and more) that you need to know about lasers, circuits and other stuff. Sam's Laser FAQ - Diode Lasers