A popular solution is nautical distress smokes. As mentionned, Gryphon stocks them, though I think he's out right now. Alternativly, you can contact local surplus or nautical stores to source them.
Be warned though, distress smokes are exactly that, for distress situation. Depending on where you use them you might get into trouble. I'm not familiar enough with their legislation, so google your heart out.
Furthermore, if you ever get the idea of making them yourself, don't. You probably don't know exactly what you are doing (I'm not trying to insult you here

), and the logistics and cost involved, let alone the effort, make is prohibitive. Besides, having seen the less than impressive result of a batch a while back, I'd just fork over the cash for a commercial product.
Lastly, check with local game organisers, pyro may or may not be allowed on the field.
EDIT:
http://airsoftcanada.com/showthread.php?t=13328
I don't remember if non-verified members have access to that section of the classifieds though...
EDIT2:
Quote:
Originally Posted by Gryphon
LEGALITIES
These devices are classified under the Explosives Regulations as a class 7.2.4 pyrotechnic device with a special application. Their purchase, possession, and use is restricted to persons age 18 years and older. No special license or permit is necessary to purchase or use these devices.
Sales will be to persons of legal age only. NO EXCEPTIONS. Buyers will be required to provide proof of age when purchasing.
Always observe local, provincial, and federal ordinances when using these devices. Obey your local field's instructions and rules on using pyrotechnic devices.
CAUTIONS
These are pyrotechnic devices and can be dangerous. Instructions for use will accompany every order and are also printed on each device. Beware of fire hazards such as dry brush or trees, or loose flammable material. Paraflares should not be used in fire-prone areas or during periods with a high risk of forest fire.
The suspended red star is universally recognized as a distress signal. Users must be very careful so as not to accidentally alert emergency services of a non-existent distress situation. Do not employ these devices near waterways or airports. If possible, notify your local emergency dispatch (fire/police) prior to use.
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EDIT3 (aaarg!): As for cost, I've seen them range from 5$ to 15$ depending on source, size, quantity etc. Usual median would be about 7.50$ to 10$.