Its not quite like that. You write out the power series and you calculate the terms term by term using perturbation theory. The first term is finite - no problem. Second and higher terms turn out to be infinite. It took people a long time to figure out why this happened but the answer turned out to be the thing you expand the power series in, the coupling constant, was infinite and not 1/137 like they thought. Substitute infinity in any power series and its infinite or undefined. To get around this problem you impose a cutoff (this can be looked on as taking the term you are expanding about as finite and later taking its limit to infinity) redo your perturbation procedure and you find it is all OK. The reason is the coupling constant secretly depends on the cutoff - which is rather trivial the way I explained it - but it took people a long time to realize this is what is going on. The value of 1/137 they used was the value measured at a certain energy scale which in effect was measuring the value with a cutoff. But the equations they used had no cutoff so you were really using the value as the cutoff goes to infinity ie infinity. As you take the cutoff to infinity the coupling constant goes from 1/137 to infinity which is why without the cutoff terms in the power series are infinite. Now what you do is assume the coupling constant is a function of what is called the renormalised coupling constant (which is the value from experiment ie 1/137) so you know it will not blow up. You assume it is a function of the un-renormalised parameter ie the value that does blow up to infinity, expand it in a power series, substitute into the original power series, collect terms so you now have a power series in the renormalised parameter. But you have chosen it so it is the value found from experiment so does not blow up. Carry out your calculations, take the cutoff to infinity and low and behold you find the answer is finite.
The infinity minus infinity thing comes from when you analyse the behavior of the series when you use the renormalised value and take the limit - you find a term that is the original un-renormalised coupling constant and a term that is a function of the renormalised coupling constant - they in fact both blow up to infinity as you take the limit - but are subtracted from each other so the answer is finite.
If you are at the level of Calculus For Dummies its probably going to be difficult to understand the paper I linked to. I have a degree in applied math and I found it tough going. So don't feel bad you are finding it tough - I congratulate you for trying.
If you want to get your math up to the level you can understand that paper you will have to a study a more advanced textbook. The one I recommend is Boas - Mathematical Methods
http://www.amazon.com/Mathematical-M...tt_at_ep_dpi_1
Unfortunately otherwise you will have to accept the hand-wavey arguments. As I said in my original post the jig is up with this one - you need to do the math.
To give a specific answer to the questions you raised and how to relate it to renormalisation I will see what I can do. If you substitute infinity into any power series it will give either infinity or terms like infinity minus infinity that are undefined. An example of the first would be the power series e^x where each term is positive and an example of the second would be sine x which has positive and negative terms. Now one way to try and get around this is let x be finite and take the limit. Before you take the limit everything is fine - its finite and perfectly OK. Now what you do is assume the variable in the power series is a function of another variable (in this case called the re-normalized variable) that you hope does not blow up to infinity as you take the limit. You expand that out as a power series and you collect terms so you have a new power series in that variable. Now you take the limit and low and behold, for the case of what are called re-normalizable theories, everything is finite. You look deeper into why this occurred and you find changing to this new variable introduced another term in your equations that also blows up to infinity but is subtracted from the original variable that blows up to infinity - as you take the limit they cancel and you are left with finite answers.
Normally when you calculate the terms in a power series using perturbation theory it does not blow up to infinity. That's because it is very unusual to chose a variable to expand the power series in that is infinity. The only reason it was done is they did not understand the physics well enough then - they did not understand the measurement of the constant they thought was small at 1/137, and was a good thing to expand in a power series about since as it is raised to a power it gets smaller and smaller, was a measurement made with a cutoff basically in effect. The equations they used had no cutoff and it all went pair shaped. When this happened it left some of the greatest physicists and mathematicians in the world totally flummoxed - these are guys like Dirac with awesome mathematical talent. It was a long hard struggle over many years to sort out what was going on. The thing that fooled them was the parameter you expanded about as a power series secretly depended on the regulator or cutoff and as you took its limit to infinity it went to infinity. When you expanded about a different one that didn't blow up to infinity everything worked OK.
As I was penning this I remembered John Baez wrote an interesting article about re-normalisation that may be of help:
http://math.ucr.edu/home/baez/renormalization.html
Thanks
Bill