Dean-
I prefer an old-time "London Oil" gunstock finish.
First precision-fit the handle to the head (even bearing all around, may require a lot of cleanup of the eye if the head is rough).
Then sand the handle (with the grain) using progressively finer abrasive grits. If you have really bad spots (not unusual on a lot of commercial handles and handle blanks) you may have to drawfile it first to smooth them out. I start with 120 grit and work through 220, 320, and 400 grits. The handle should then be smooth as a baby's behind. If you don't mind a rougher handle (or want a low-reflectance finish) 4/0 steel wool also works well instead of the 400 grit.
Apply a coat of linseed oil and let it dry overnight. Then start rubbing in succeeding coats (must be rubbed in until "dry" to the touch or you'll have a gummy nasty surface).
After installing the handle for the last time, give the handle and head a protective coat of paste wax (old fashioned Johnson's works as well as the expensive stuff). When dry, polish it out with a cloth (old t-shirts work fine).
Maintenance is then more linseed and wax as necessary to keep the handle from getting "thirsty" or to rub out dings, AND to prevent corrosion of the head. Linseed and wax work fine on metal, but machine oil is NOT good for wood.
Hope this information helps.
TWO HAWKS
http://www.2hawks.net