I, like Steveba, also did woodworking, and still do on occasion. With that, I have used everything from tung oil to danish oil finish(Watco) and even neutral shoe polish. When I made my first kit knife a few years back, Ed Thuesen, former proprietor of Texas Knifemakers Supply recommended that I use a product called "Fix-It" instead of the "usual" wood finishes that I was familiar with. Ed's argument was that tung oil and the others were OK on furniture and such but would not hold up as well on a knife handle. I don't know if that holds true or not since I have used nothing but the stuff since I have had nothing but good luck with it.
This is an acrylic based product that is used to "fix" ceramics. You spray it on coat after coat until the grain in the wood is not dimpled. After the last coat cures overnight buff it off with CR. The first time I did this, I thought that I really mucked up the whole works. The stuff comes off in globs! After the "globs" are buffed off, all of the grain is sealed and it buffs out rather nicely. This stuff really seals the wood. I believe that Texas Knifemaker's Supply still carries it.
Now, if the truth be known, I prefer not to work with wood as far as knives are concerned unless it is really just a beautiful piece of wood. I much prefer stag or water buffalo as far as natural materials go. The reason is the finishing process. Once the horn material is sanded and buffed, the knife is finished. Wood HAS to be sealed to be properly finished. It just adds that much more time unless the wood has been stabilized, then its just sand and buff.
CLWilkins