A few months ago, I had a friend aproach me, he needed a simple to use timer for his caravan. Wanted a selection of times - 30, 60, 90 mins. It had to turn off a radio or something.
I used a little picaxe. One input for an illuminated pushbutton. One output for the LED in the pushbutton, one output for the control (I used a small relay).
The device I used was a little 8-pin PICAXE - about $4, with hardly any other bits required. The reason I mention it, is that these chips will aparantly work happily down to about 3V, so should work in your application.
My code was fairly simple, but effective. One press was the shortest time and gave one brief flash of the LED every couple of seconds and was a (preset) 30 mins time. Another press within the first second or so and it gave a 1 hour timer (two quick flashes). Three presses was 90 minutes. A 4th press turned it off. Pressing the button more than a second or so after a previous press reset the current time to its full period (eg, if it was down to 5 mins left, one press would reset to 30 mins).
If anyone is particularly interested, I'll dig the details out.