The diode should be connected "backwards" across the load. The end with the stripe should be toward the +ve supply rail.
You should be able to get away with a standard rectifier diode. IN4001, for example.
That mosfet looks fine. However, since it is an N channel mosfet, you will need to have a 30% duty cycle with your oscillator, as the mosfet is ON when the output is LOW.
An that's a little more of an issue with a 555 since (without some tricks) the duty cycle can't go below 50%.
can you show us how you connected the mosfet?
The mosfet probably only needs a small heatsink. I would have recommended something with an insulated (or plastic) tab to make it easier to heatsink it without the risk of shorting to the heatsink. And also I would have advised a P channel mosfet.
But given that it's working with a duty cycle of 20% to 30%, I'm pretty sure that it isn't critical. But I would beware that it may not be engaging properly.