Would wrapping the hammer with tennis grip tape help?
I wouldn't wrap the hammer, it's possible the handle is too fat and round and has too smooth a finish. Most hammers come with handles that are both too long and too large around. Try shaping the handle so that the sides are a bit flatter so that the handle has a more of a rectangular cross section than oval. Of course keep your hands as dry as possible. I do think blisters are somewhat inevitable though, especially if you don't get to forge often enough to develop callouses.
How do I keep from making Bananna shaped blades?
Like Jeff said, straighten as you go, it is also perfectly o.k. to lightly hammer on the on the edge itself to take the curve out of the blade. Remember if you decide to pre-curve the stock, curve it down toward the edge-to-be so that the blade straightens out as you forge the bevels in.
What is the best hand tool for stretching Damascus?
I think you mean for drawing out a damascus billet. What works really well for a friend of mine is a hammer that he modified so that the main stiking face is essentially a straight peen with a very wide rounded striking surface. This channels the force of the hammer blow lengthwise. I plan to modify an engineers hammer soon for the same thing. You can also make a bottom fuller that fits in your hardy hole either in conjunction with the drawing hammer or a regular hammer. Jeff has also give good advice to not rushing things, just concentrate on forging nice profiles and bevels on mono-steel, especially concentrate on forging the tip without either clipping the steel on an angle first and without forming the dreaded fishmouth. Forging is the perfect opportunity to get a great distal taper going as well. That said, it's hard not to try pattern welding when the opportunity presents itself.
Any other tips to make this journey easier will be helpfull.
Lets see, make sure you have a neutral or reducing atmosphere in your forge and if you haven't already, try the Japanese trick of wet forging. It's oh so satisfying to hear the POP as scale comes off your work! Just keep a bucket with a few inches of water near your anvil to dip your hammer in. A frayed section of heavy manilla or sisal rope makes a great mop, just dip it in the water and swipe the face of the anvil while your blade re-heats. Oh, very important! Don't neglect forearm and wrist stretching excersises before you forge! I couldn't forge for a few months at one time because I neglected to do this and it didn't get better until I started doing the stretching excersises religiously. Try and get into the habit of wearing eye protection while forging
One last tip, try really hard not to drop nearly white hot billets of damascus into your slack bucket!
