I want to thank Jason (hathcocked) for sharing this idea with me. He answered all my questions and made the hack that much easier to do knowing that he had performed it successfully.
Before I got the camcorder, I was aware of its limitations and planned on doing this mod/hack from the beginning. I spent around $200 on this entire project; camcorder and all ($120 for the Flip MinoHD on my local Craigslist; and around $80 for the Kenko and Lensbaby lenses from Amazon).