Right now I make several types of projectiles
1) smoke rounds using potassium nitrate (stump remover) and powdered sugar.
2) marker / "fire fighting" round. Made with abc fire extinguisher power mixed with orange chalk and a bursting charge. this is a safer round for dry locations and makes a easy to see orange cloud
3) fire work round using flying fish and strobe fuse and bursting charge
4) flash with audible round. this works well at night. it makes a nice bright whit flash with a bang that get your attention. I use a bursting charge mixed with steel powder
5) Incendiary rounds for setting back fires or lighting large bonfires. This is a simple mix of smoke mixture and magnesium or in place of the magnesium a mixture of iron oxide and aluminium powder.
From my take (and this is only my take) on the laws, it is the intended use of the round and not the round it self that puts it in a D.D. category unless you use over 1/4 of of explosive powder in the round then no matter what the intent is it is still a D.D. round. If you use it as an anti personal / equipment round then it will fall under a D.D. so If you use a flare round and shoot it at a person that will be considered a D.D. but If you use it for signal or other use that will not harm person or property you are good to go.