Actually I was using a towel with a tight weave (shop) towel. I did not have any problem of it loosing fibers. What I think the problem is. It is very easy to put on a very thin coat and it does not have time to self level before it starts to dry.

I think Tom may be right about using a rag for filling scratches. You can get the varnish into the scratch and wipe off any excess for a mid season repair/touch up.

Jason

: Maybe you just need a tighter-weave rag. Something more like a bedsheet than
: a terry-cloth towel or shop rag. Another plus to a finer-woven cloth would
: be less chance for fibers to end up in your varnish job...

: Dean