Sorry I took a while to respond, but as I said, I learned this from Michael Rader up in Washington, and I felt like I should check with him before divulging his secrets. Michael says he learned it from Wayne Goddard and gave me permission to explain how it's done. (Michael is a great knife maker and a super nice guy, btw.)
It's a patina, done with mustard. I use French’s, actually. You finish the blade (maybe to 600 grit). You then apply the mustard in little dots with a toothpick, and let it dry. Drying takes three or five hours, and it turns black. I tried using a heat lamp to accelerate this, but I think it actually works better when the mustard is allowed to dry slowly. Once it's dry, you wash it off and repeat until you get the finish you want. For some reason, the patina is much more distinct on hardened steel, so this finish doesn't work so well on blades that have been differentially hardened (e.g., clay coated, edge quenched, or even if the spine has been tempered back too hard). Sometimes, the patina opalesces, creating a cool sort of a rainbow effect, but I haven't figured out how to make that happen deliberately; it just happens sometimes, or not. You can see a great example of this if you look at image 19 on Michael's site gallery here: http://www.raderblade.com/gallery.htm . (If someone else figures this out, please share.) Obviously, the size and spacing of the mustard dots you apply affects the pattern of the patina, and you can play around until you get an effect you like. One nice thing about it is that the etched surface holds a nice film of oil, so it doesn't rust or stain so easily. Plus, it's easy to touch up if it gets scratched, etc.
Hope this is of some help guys, and again, sorry for the delay in sharing.