Ed,
The idea is to tighten the metal within the wooden shaft.
Drilling oversized just puts the goal further down the road (read: more hammering).
Ditto the light tapping to peen. I go in a circular motion as I try to expand the pin just under the head. Tap in a circle with 5 or 6 hits, then one dead center-straight down. Repeat until snug (gaps visibly closed under a magnifying glass).
Avoid the 'one more just to be sure' smack. Sure as shootin' that will be the one that splits your wood.
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