Randy,
I'm not sure if I understand you concern about screwing it up, since I don't know what you're afraid to screw up. But here's how I would do it:
Find a nice, squared up block of wood. Trace the blade, holes and tang, and draw a straight line across the bottom of the tang from the lowest point in front (ignoring the curve down to the edge) to the lowest point at the back of the tang. Measure from this line up the highest "hump" of the back of the tang. Now slot the wood with a table saw to that depth plus some extra for sanding. The difference between the lower tang curve and the straight cut won't matter as you'll fill that channel with epoxy, and the butt of the handle will be in full contact with the wood, hiding this crude fitting method.
Use the edge of a narrow file to get that tight curve of the front bottom of the tang slotted into the handle. This slot only has to be pretty where it ends - where you can see it when looking at the edge.
Now mark the profile of the final handle shape you want and cut that shape with a coping saw. Do it oversized; you want to leave enough material to sand away down to the exposed tang after gluing. Completely finish shape and sand the front of the handle - the part that the blade/ricasso disappears into. This is the "guard" or "bolster" area of the handle. This should be the last time you sand this part of the handle.
At this point you should be ready for gluing. But some scotch tape on the blade where it comes out of the handle and put the handle on. Using an razor, cut the tape using the finished front of the handle as a guide. Pull the handle off and peel just the tape that was under the wood. The tape that's left will keep epoxy off the exposed blade. Tape up the finished area of the front of the handle for the same reason. After the glue has set, whatever leaked out the front between blade and handle will only be sticking to tape and will peel right off.
Rough the tang up a little with course sand paper and degrease with alcohol. Fill the handle slot with epoxy as well as the tang holes. I like the long cure stuff for extra strength. A single clamp is fine - high pressure isn't going to make the bond better with epoxy. Wipe off the extra, but don't worry about it.
After it has completely cured, peel the tape. Start your sanding by bringing the wood on the back and butt of the tang down to the tang metal. Expect to finish sand both together for a perfect finished look. You don't need pins with this type of tang, but if you want them, use your traced template at this point to locate the holes. I'd recommend using undersized pin material so your hole locating doesn't have to be perfect. The purpose of the pins is to tie the two handle sides together - they will run though the epoxy in the tang holes. Epoxy them in. Don't peen them - that will just stress the wood. Cut them off when cured, shape during sanding. Brass and copper pins are good for this because they sand easily. If you wanted a lanyard hole in the wood under the tang, drill that now, too.
The rest of the work is done with a dremel sander or by hand. Hold the handle frequently as you shape it until it feels perfect. Then sand by hand for smoothness and beauty. The top and butt of the tang and the pin ends should blend right into the wood. Everything else should be hidden inside. Hopefully you finished the front of the handle enough that you don't have to go anywhere near the blade with sandpaper, but tape the blade just in case until you're done.
Linseed or other oil finishes are great, simple wax ain't bad.
