1/8 inch pins work fine. I use a variety of finished. Danish Oil, Tung Oil, Hard Carnuba Wax power buffed in for a glass like finish. Burned in Tung Oil, Stained with Aquafortis, etc.... Lots of good options. Research on here and then search around on the web. Pick one and take your time you will end up with good results.
Actually that applies to the whole process. Take your time, enjoy the work, and you can end up with a first knife to be proud of.