So, tmanifold: when I finished gunstocks the wood was kiln-dryed and unstabilized. My sword handles and guards were unstabilized. With your knife handles, you should use stabilized woods. And, if you want to use this finishing technique, it's really only necessary if there are large open grains/pores like with stabilized Koa, Walnut, etc... Even stabilized Maple has pretty big pores that should be filled. Oily woods like Blackwood, Ebony, cocobolo, etc... you can pretty much just sand down and wax with #0000 steel wool.
Regarding, the way my wood handles go together, I did write an article for Blade magazine on this that has pictures, etc... I forget what year... 2009 or something... before my M.S. test. Anyway, regardless of the shape you are fitting, you need to make a very precise sanding jig for it. Pretty simple really: the male portion needs to be perfectly sanded and the female portion needs to be perfectly sanded. When they fit together there should be no gaps and I use Gorilla glue and clamp tightly.
So, your next question is, well, how exactly do you get the male portion sanded PERFECTLY to fit withing the female portion? I'll give you a clue. You can build up your jigs very easily with blue painters tape and, in addition, you can adjust the grit of your sandpaper. Maybe one jig for the female part works best with some self-adhesive 80 grit, but the male jig works best with some self-adhesive 220 - you'll figure it out - you see, different grits of sandpaper are different thicknesses. Keep the paper sharp.