After a lot of playing around, I think I've finally found a finish that I'll stick with. It's a blend of equal parts of pure tung oil, varnish and turpentine. I use Epifanes gloss varnish, but it probably doesn't matter. This finish dries within 24 hours to a beautiful satin sheen. It's more durable that straight oil finishes, but hot as hard as varnish. The feel in the hand is SWEET!

I apply it just like oil. Wipe it on, allow it to penetrate for a few minutes, then wipe off the excess. Three or four coats seems to do a good job. For a really smooth finish, apply the last two coats using 400 grit wet/dry sandpaper.

Make sure that you get 100% tung oil. Most commercial products labeled "tung oil finish" have little tung oil in them and are actually wiping varnishes. I got my tung oil through Lee Valley, but it's available through many other sources.

BTW, I also epoxy coat the tips of my paddles and reinforce the edges of the tips with 'glass or Dynel. That's the area that takes the most punishment.