John,
This is what I do and to be honest with you I don't know if it is right or wrong but it ALWAYS works for me. If someone else does it differently, don't be shy about it. You won't hurt my feelings.
For drilling thru the tang and the bolsters I use a #41 drill bit instead of a 3/32. The #41 bit is .0960 inch and the 3/32 bit is .0937. This is just over 2/1000ths of an inch difference. No reaming is required. This has no effect on peening at all and the pin is "invisible" after peening. Just a hint....
Lets say the holes are already in the tang. I line up one bolster and drill it. Evidently you do not have a problem with that. Place the pins thru the tang and the bolster that you just drilled. Flip the blade over. The bolster that you just drilled is now on top of the blade. Now, take out one of the pins that is in the bolster and tang and drill the hole thru the other bolster. Now, place the pin that you previously removed and put it thru the hole that you just drilled. This pin will go thru both bolsters and the tang. Remove the other pin that is only going thru the first bolster and tang and drill that hole in the second or bottom bolster. Place that pin thru and there you have it. Remember, the drill bit is always passing thru the first bolster then the tang before it is actually drilling a hole thru the second bolster. Whew! It sure is a whole lot easier to show someone than it is to explain it.
Peening. Don't have any mercy on the pins. Hit them as hard as you can without bending them over. I have had better luck doing this than trying to round the tops of the pins by barely tapping them unless that is the effect that you want.
After I knock the "tarnation" out of them the "heads" of the pins are virtually flat. Don't hit the bolster, just the pins. After you do this and grind off the excess, the pins will be invisible. One thing I must mention. The bolsters I use are 303 stainless. I have made them with nickel-silver and brass which are both softer so be a little more careful with those materials.
I prefer stainless hardware because it does not tarnish.
If you are making folders, then it is quite different. Everything mentioned above applies only to fixed blades.
If you have any questions, do not hesitate to ask or to post it on this forum. I have come across some very good information on this site. We have all had problems with one thing or the other at times and it is really nice to have a board like this. There are folks out there that genuinely want to help and I have found that most of the knifemakers that I have come across are really fine folks.
Breaks over, back to the shop....
CLWilkins