I used water soluble aniline dye to color a cedar strip canoe with good results after a learning curve.

Aniline dyes have the advantage of being water soluble and do not interfere with the bond of the epoxy to the wood like oil base dyes do. They also are the most color fast of the dyes and stains. They come in a powdered form in many colors and can be blended and mixed with water to any desired darkness. Since they are water based they will raise the grain of the wood. If you are looking for a really smooth finish you should wet the surface first with water and let it dry to raise the grain and then sand it smooth. (Do not get carried away saturating the wood with water or the white glue holding the strips together will soften allowing joints to open.) Then you mix the dye and apply it in one or more coats. It can be sprayed on, rubbed on or brushed on. Dark areas can be lightened by rubbing with steel wool or FINE sand paper. The dye only stains the surface ot the wood so all sanding must be done before dyeing. The wood should be allowed to completely dry prior to applying the epoxy to avoid trapping water adding to the weight of the boat. I waited a long week in dry weather. You can find aniline dyes at several of the wookworking supply houses. I buy mine at a local hardwood supply house. You can find it at http://www.woodcraft.com/website/indx.icl

Also be sure to look at http://www.greenval.com/FAQstaining.html for additional detailed dyeing instructions.

PS don't try to bleach wood to lighten it, the epoxy turns it darker than natural unbleached wood.