My technique is pretty much what Madjack does. I made lots of crafts finished with stain/varnish that I sold. I didn't like the mess or extra time associated with staining, so I like to use Minwax Polyshades, a stain and varnish mix that puts on the stain and the varnish in one application. For additional applications, if the color was deep enough, I'd use regular Minwax Poly Varnish for addional finishes. If I needed a darker finish, I'd use the Polyshades again for the next application to deepen it. It requires an even coating, or it will be darker where the finish is applied heavier.
Compressor? Yes, I used my compressor with a filtering system on it to catch water, oil, etc. I used a medium grade auto type paint gun that does either pressure or siphon applications. Siphon for thin paints like varnish, and pressure setting to spray latex based finishes, and it did a great job for both...you can spray latex well when you thin it with water (usually 1 pt water to 4 pts latex paint). I believe I did less thinning with the poly varnishs, maybe 10%-15% thinner. You can also buy the polyshades and clear varnish in spray cans, but it may take a quite a few to do an interior.
Using satin varnish finishes, I could usually get by with just two coats. The first coat seals and raises grain somewhat, so that is why the first sanding with 180 or 220 depending on how smooth it was after the first coat. The sanding smoths down the grain in the wood so that the next coat goes on smoother. For a really nice finish, and I'll probably do this on my trailer, the 2nd application and sanding with finer grit and a 3rd application. I've never had to sand after the final coat, and don't see the need for it if the first coats are applied and sanded properly (no dust or bugs getting onto the surface of the final application before it dries). Buffing with a fine rubbing compound might help, but make sure the finish is completely dry before trying that. I think a gloss coat needs more care and work to bring out a really nice finish, but I hardly ever used gloss. Mostly, I used satin and sometimes semi-gloss.
Here is the top of a narrow trestle table I made for my wife's plants by the window. It is finished in just two coats of Light Oak Polyshades satin on spruce that I will use for my cabinetry.
