I cut my oil 50:50 with mineral spirits. I usually buff off the first couple of coats down to the wood to make sure that the pores in the wood are completely filled. After that, I don't buff between coats unless the finish has picked up dust or other contaminates. I find anywhere from 5-7 coats is usually just about right.

I have recently found that Mr. Clean Erasers will take off the shine and give a nice matte finish. If I want a dull finish like on military rifles, I will rub it out with automotive rubbing compound. Paste wax like Johnson's or Renaissance wax will protect the wood and leave a matte finish.