Things I have learned about using Varathane:
1. Use your first coats thick, straight out of the can. On open grained walnut like the Ross stock I'm doing I would go five or six thick coats, as thick as I could go without getting runs, before attempting to sand it. Especially if I've stained the stock.
2. Once it's built up more than sufficiently heavy, use 600 grit sandpaper on a backing block wherever you can use the block. Sand towards the edges when near them, not back and forth. Then use 600 and your hand to get the rest. This will show any bad low spots you need to fill, like any small ding, gouge etc that you've missed. Spot fill these holes and then once dry sand them out again, repeat until full.
3. Now this is where I'm at on this particular stock. Thin the hell out of the Varathane with water. Find a good applicator that will allow you to put it on thin and streak free as possible. I'm going to do a bunch of coats like this and sand it with 600 again until it is perfectly smooth. Then I plan on one last super super thinned coat over that which I will let stand and check the results. If it's not to my liking wether too shiny or whatever I will rub it down accordingly with either the 2000 grit or polishing compound until the finish I wanted appears.
It is looking great so far, thanks a bunch for all the help everyone.