Cheating with Macro Photos

My wife loves to take macro photos. But the macro lens we would get is $679. So we tried to cheat by getting a $9 Macro Extension Tube Set. But it turns out you can't cheat your way to great photos.
There were several problems. The main one was that the lens that comes with the GX1 is a power lens, but the tubes don't allow for any power to flow to the camera. This means that the camera thinks there's no lens, but more importantly, you can't focus the lens, so it only works at a fixed point.
I could live with that, if it took great macro pics at that point. But it doesn't. The pictures are blurry. Here's the best shot I could get with the tube:

If anyone has any idea on how to get great macro pictures with a Four Thirds lens that doesn't cost over $600, I'd love to hear about it.
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