I did a Pal RH36 with a KaBar supplied leather handle kit, I found using a strip sander with the whole handle solidly together seemed to work the best, though it was far from perfect. The only one I've done so far.
I would recommend Fiebings Professional series dye in the color of your choice. The professional series are oil based, so they penetrate a little better and are slightly more durable. You can dampen the leather slightly with water to get even better dye penetration. After the dye, let it completely dry and burnish to get the excess dried dye off. Then apply conditioner before you apply the top finish.I'll need to find a good leather stain and sealant now.