The following are MY opinions based on MY experience, and are not intended to agree or disagree with anyone else's methods.
1. I don't ever dip a sheath in anything. Apply Pure Neatsfoot oil sparingly, and since I fully line everything it is exterior only. Too much oil will clog the leather and make it unable to breathe.
2. After the oil has leveled I apply once again sparingly Feibling's TanKote, similar to BagKote mentioned above.
3. When that is dry I apply NeatLac (Wyosheen) also similar to SaddleLac, but not the spray on version.
I have always wondered about the use of Snow Seal, Bee's Wax, and all the other products intended to "waterproof" a sheath, particularly the inside. Question: Why would you work so hard to intentionally make a vessel that would hold water out of your sheath? If you are submerged in water, or rained on for a long time or whatever, I guarantee your "waterproofed" sheath is going to be wet and will have to be slow dried using the same time and methods as if it had not been "waterproofed". The big disadvantage is you have clogged the leather with foreign material and it will inhibit it's ability to dry naturally and thoroughly because it can not breathe. It is also like a magnet for dirt and grime.
The use of a hair dryer will, in fact, speed up the absorption rate and leveling of the Neatsfoot Oil, It will also help to stiffen the sheath which is a good thing. The Hair Dryer needs to be put away after the Neatsfoot application step.
What I have stated here is my method. If yours is better, by all means use it.
Paul