here we go with another installment:
i finally got around to working on this some more. JeffH very generously sent me some nice black walnut (i think) burl along with some other goodies (thanks very much Jeff!!!) and i am using a set of scales for the handle on this knife.
since i just about ruined one of the blocks trying to drill it out for the tang, i decided to go with my fall-back for hidden tangs.
in my case the wood was free. if you don't have people dropping wood in the mail to you all the time

then you can ask at a lumber mill if you can take a look through their scrap bin for hardwood bits. the plainer the better for shaping and working it, but highly figured woods will look prettier once they are done...up to you. if you don't have a lumber mill nearby, you can try the local highschool woodshop or even a hardware store that stocks lumber. if it comes down to it, you could even cut a block out of a standing dead tree in the woods...
so anyways, now that i have my blocks of wood, i start by sanding the mating surfaces flat with a piece of 40 grit sandpaper:
then after i traced the tang onto the scales i used a Dremel (any rotary tool will work fine) with various cutting bits to carve out the channels for the tang.
if you don't have a rotary tool, you can have at it with small chisels like i had to before i found the Dremel hiding in a corner...harder but if you are careful the results will be just as good, maybe even better since it takes longer to mess up
after i have the channels fitting well, i cut some pieces from a brass sheet. i don't remember the exact cost on the sheet, i think it was around $7 at the local Ace. if you don't have the $ or a nearby source, you can scrounge for old brass hinges or other sources of brass. you might even be able to forge out some old belt buckles or something...