Preparation
I'm not going to go into a lot of detail about preparing the stock as there are as many different ways to do this as there are people that do it. I buy a lot of old military surplus weapons and as I have time I like to refinish them if they need it. There is the old adage, "If it ain't broke, don't fix it". Some stocks I leave alone and just apply Gunny's Paste to it. This is just the way I do it.
Remove all the metal parts.
Find a name brand varnish, lacquer, and shellac remover. I use Dad's Easy Spray Paint, Stain & Varnish Remover. It comes with a spray bottle attachment as well. I purchased mine at a local hardware store for $32.95.
Get yourself a large aluminum drip pan (available at Walmart, about $10) and place it over the top of a garbage can.
Place your stock and hand guard on the drip pan and spray it down with the stripper. I'll use an old paint brush to work it in good. Be sure to use some heavy rubber or latex gloves, not those skinny surgical gloves. If you get the stripper on your skin it will bite you. Also, do this in a well ventilated area, not the wife's kitchen.
Allow it to work about 15 to 30 minutes.
Repeat the process this time using #00 or #000 steel wool. I've also used a Scotchbrite scrubber in a pinch. do not scrub too hard and stay away from the cartouches and stamps. You can put your thumb over them to protect them as you scrub.
Give it another 30 minutes to work.
At this point I'll wipe the stock dry with paper towels and then sneak into the kitchen and wash the stock down in the sink. Dad's Easy Spray will clean up with water or solvent.
Let the stock dry overnight.
Repeat the process one or more times until no finish remains.
Steaming out Dents, Dings & Scratches
There a a couple of schools of thought here. Some people soak the stock in the tub for 15 minute or so and then apply the steam iron directly to it. I personally wet down a clean old cloth and place it over the affected area and touch it with a steam iron until no more steam appears. I'll repeat this as many times as necessary. Depending on the size of the dent or ding, it may not come all the way out. Also note you cannot steam out missing wood. Again, stay away from the cartouches and stamps.
Let the stock dry overnight.
For those dents, dings and scratches that you could not steam out I'll use 100 and then 150 grain sandpaper on them to smooth it out as much as possible. I'm not one for trying to remove all the dents from my military surplus weapons. If you have to patch it, as good as it will look you will still be able to see where it was patched. I just leave them alone. There might be some history behind that dent or ding.
Staining the stock and hand guard
Everyone has their favorite color or stain to imitate the military color. My preference is Minwax Red Mahogany #225. I find it gives a nice dark red hue to the wood very similar to the original finish. To each his own.
Using rubber gloves and a clean cloth rub the stain over the inside and outside of the stock and hand guards. Use a thin coat.
Allow to dry overnight.
Repeat this process and let the stock dry overnight.
Lightly sand the stock and hand guard with #0000 steel wool comparing the color of both. I've never been one to care much if the color between the two is off.
For those that want a more uniform match, if the stock is lighter than the hand guard, sand the hand guard with #0000 steel wool until it matches and stock.
If the stock is too dark, apply another coat of stain to the hand guard. Is the hand guard is still too light, rub the stock with #0000 steel wool where the hand guard fits onto the stock, and lighten the stock until it matches the hand guard. With a little experimentation you should be able to match the two up.
Apply Gunny's Paste
Take you stock and hand guard and rub Gunny's Wax on the outside with the palm of your hand. Allow the friction of your hand to melt the paste into the grain of the wood.
After rubbing in the first coat, rub it with a clean towel.
Repeat this process as many times as you like.
Do a final rubdown with a silicone cloth.