im wondering how much stock you leave out to peen and how fast your trying to peen them? i believe all answers to the softening procedure are correct imo, heat and quench, but i never do it and i use nickle silver pins on 99% of my knives, and never have them chip. try flattening them a bit to swell them and fill the countersink, then peen over and dome. i use a very small hammer, and just tap,tap,tap.......very easy and slowly, and it works fine. i usually buy them from jants, but on occasion i will use Ni rods, with the flux knocked off, and then i gotta go even slower, cause that nickle is darn hard stuff. maybe 1 out of 40-50 pins have to be taken out and done over, just guessing, cause i cant remember when i last had one go wrong,
i have had some trouble with bronze pins, but those i dont anneal either, although it would prob. be to my advantage.
just my thoughts, good luck,
andrew