I would like to add a 3v vibration motor that vibrates 500 milisecond alerts in my tinyduino project. I am guessing I will need a seperate coin cell battery for the vibration motor? The tiny lily motorboard seems smaller than a transistor with diode bridge that I could create. Should I use the tinylily motorboard or is there another idea to add the vibration motor and keep everything as small as possible? If the answer is the tinylily motor board how would I wire it since I do not need any direction or speed control.

You can connect the tinylily motor controller to the TinyDuino's proto board. If all that your driving is 1 motor it should be fine running off the one coin cell. If you need more power then you can connect an external power supply to the TinyDuino and just leave the coin cell out.