You should have used something like this for your 1-watt luxeons:
R = 1.25/0.35 (350 mA) = 3.6 ohm resistor. Should be located where it says "3.9 ohms" on the diagram below.



I haven't seen the specs for the 3-watt LEDs, but hooking up will be the same as with the 1-watt LEDs. Assuming the forward voltage is 7 volts at 700 mA:
R = 1.25/0.70 = 1.8 ohm resistor is needed.

The part that gets me is forward voltage does not come into play in these calculations. So you ask "how many LEDs can I run in this series?" Two LEDs in series will pull the same current (700 mA) as one LED provided you double the supply voltage. And there's the key, you need to have an adequate supply voltage. With a forward voltage of 7 volts, plus the 2-3 volts of "overhead" required by the LM317 regulator, you can only run one of these 3-watt Luxeons per circuit. You would need about 17 volts to run two 700 mA LEDs. (17 volts - (7 volts X 2 LEDs) - 3 volt LM317 drop).

Given this, looks like you could barely run 3 of the 1-watt Luxeons as they generally have a 3.6 volt forward voltage.