As a woodcarver, I am familiar with finishing wood. Sand your handle to at least 240 grit before starting to finish. I would use boiled linseed oil (diluted 1 part oil to 1-2 parts mineral spirits to help penetration). Give the handle at least three coats. Keep it wet for about an hour to let the wood absorbs the oil. When dry, sand it well with some black 600 grit wet/dry sandpaper until smooth, and recoat with the linseed oil mixture again. Let it dry for 24 hours. Do this for three consecutive days. Finally, rub it down with 0000 steel wool (woodworking supply stores) and give it several more coats of a good furniture wax. You can apply most waxes rapidy. Coat, let it dry, buff, and recoat in about an hour. Several coats will add depth and lustre to the finish. This treatment will bring out the beauty of the wood grain and protect the wood. You will see a startling color change when applying the oil for the first time. I just love that moment. Reapply oil and wax yearly and the handle will last forever. If you want a tougher and more waterproof finish, use several coats of clear polyurethane based wood finish (satin, not high gloss) AFTER applying the linseed oil as described above.
As for the mirror finish, it's the same thing as with finishing wood, but much much harder. Start with rough grit sandpaper to remove any surface imperfections, and work you way up through finer and finer grits. Most hardware stores carry emory polish (rough), and jewelers rouge (fine) which will work well with the dremel on small felt buffing wheels. A true mirror finish is going to be very hard to achieve evenly with the dremel. I would suggest doing a nice satin finish with 600 to 1000 grit sandpaper. Work it by hand evenly, and in one direction. Good luck.
Paracelsus
[This message has been edited by Paracelsus (edited 08-18-2000).]