Ryan,
Usually a pinhole, as small as possible in aluminium foil is used.
I have a couple of the Hubble torches which work 200% - the accuracy of the pinhole is what's its all about.
The pinhole should be around x10 the focal length from the scope - for the C8 that would mean around 20m.
The image you show looks Ok BUT what's causing the secondary fainter image? I assume you only have one hole in the card?
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