Going from prototype to market

Toonol writes: I've put together a prototype of a small device, and am considering manufacturing and selling it in moderate quantities (hundreds, maybe thousands). It's currently constructed out of parts purchased at Radio Shack, but can anyone point me toward a better wholesale source for resistors, switches, LEDs, and so on? This will be an inexpensive device, certainly under twenty dollars, so every penny saved is important. Another concern I have is regulation... if I am selling a handmade electronic device on eBay, or on my own web site, is there a chance of running afoul of the FCC or similar agencies? Any other general advice would be appreciated, since I'm sure many Slashdot readers have gone through this process.