I have a 7mW NeHE laser here. I have read that using something similar to
a telescope I can significantly reduce difraction on the beam. I have a
telescope here as well, but regardless of how I point the laser through the
telescope the beam either comes out bigger than before or not at all. I
must be doing something wrong, but what, and how do I do it right!?
Thanks!

I'll assume you mean dispersion rather than diffraction.

Try this. Aim your laser at a target some distance away, perhaps a
hundred yards, away and measure the beam size. Aim your telescope at
the target and focus it so that it's in focus and centered for your eye.
Now aim the laser though the telescope being careful not to touch the
telescope. Once you see the beam near the target carefully adjust the
focus of the telescope and you should find that with a slight focus
change the beam at the target will be much smaller than it was without
the telesocpe.

And I guess both you guys mean divergence.

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It's rough when senility takes over.
Yes, divergence...as in divergence from reality...
It can be embarrasing.
--
Lou Boyd

So to make things a bit simpler for me, let me ask you if I understand the
procedure. I first focus my telescope on what I would like to direct my
laser at. Then I point the laser into the end of the telescope I look
through at very close range. Then if all goes well the laser will reach
the target at considerably smaller divergence than without the telescope?
I have tride this in my house, but perhaps it isn't working because the
telescope is not in focus. I will try it in my yard now. Thanks

Okay I got it working now! Amazing!
Is there anything important I should know now before I start beaming
messages up to space?

Your laser is behaving exactly as it should. What do you understand
your phrase "significantly reduce difraction on the beam" to mean?

I meant divergence. I would like to keep my laser focused in a smaller
area over a long distance. I don't want a big dot, when I can have a small
one with more light in it.

If you do it correctly the beam exits the telescope larger than when
it entered, but its angle of divergence is smaller. The angle of
divergence is proportional to the ratio of the wavelength to the beam
waist. The telescope has basically increased the beam waist size so
the angle of divergence drops.