A child is able to understand the meaning of a time out by 9 months, so you're a little overdue in implimenting that. You have to understand that your 1 1/2 year old understands nearly everything you say to her, and also has the understanding now of simple right and wrong. If she persists in doing things that you know she knows is not appropriate, absolutely put her in time out. Forcing her to sit in your lap for a time out does not work - you should not have to phsyically restrain her, and it does nothing as far as making her understand discipline.
All 1 1/2 year olds laugh in the face of a no from mommy or a time out, its just what they do. It in no way means that she doesn't "get it" - she DOES get it, all too well, and thats why she laughs at you. She knows that she can do what she wants because there are no actual consequences for inappropriate behavior. You better start the time outs soon, or the behavior can quickly get out of control.
Find a designated area that you can plan to use forever as her naught spot, and everything she perseverates a behavior after you have told her no several times, take her to that spot. You may have to do it hundreds of times to get her to stop the behavior but it will work (I am a child psychologist AND mother of a very stubborn 1 1/2 year old myself). Explain to her when you put her in her naughty place that she is there because mommy told her no, and she didnt listen to mommy. The naughty spot should be in a different room, or at least far enough away so that she cannot see you and look for attention for the behavior. She may not stay in the spot for long, but it serves as a place for removing her from a situation that is inappropriate - it doesnt really matter how long she stays there.
Remember that your baby is SMART - don't let her get the upper hand in the disipline area, or you're doomed ;)