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After sanding what will be the top surface of my peghead veneer with 400 grit sandpaper, I marked and roughly cut out the hole for the tension rod pocket.  The blade I had on hand for my coping saw was too rough so I used a Dremel tool to rout it out.  While I was working on this, I noticed something that concerned me.  In the photo below, you can see where I have made some pencil marks on the neck for some of the shape of the peghead.  At the nut, the neck is incredibly narrow.  When I was cutting the pocket for the tension rod, I was making it large enough to fit a socket onto the adjusting nut.  I think the pocket is a little bigger than it really needs to be and maybe a special tool, smaller than a standard socket, should be used for tightening the nut.  Once the neck is shaped there really is not a lot of wood left.  I think everything will be OK, but I also think I will widen the neck at the nut by 1/16in to bring it to 1 1/4 in wide.  I checked online and I think the pattern I have for the neck is on the narrow side.

Hole for pocket cut in veneer

Hole for pocket cut in veneer

 

Since the peghead is tilted back from the fretboard plane, the veneer will meet the nut at an angle so I sanded that edge to meet the nut properly.

Veneer sanded to meet the nut

Veneer sanded to meet the nut

 

Below is a photo with the fretboard, nut, and peghead veneer laid on top of the neck.  I am going to glue the peghead veneer on first.  It needs to be glued in the proper position so the nut is in the right place and is perpendicular to the length of the neck.

Fretboard, nut, and veneer on neck

Fretboard, nut, and veneer on neck

 

I thought gluing the veneer on was going to be straightforward, but was actually a bit difficult.  As I mentioned above, the veneer needs to be glued in the proper place so the nut ends up where it needs to be.  (I suppose you could cut the veneer where it meets the nut afterward.  I will have think about that on my next banjo.)  Parts like to squirm around when there is glue between them and they are clamped.  It was recommended that the veneer be held in place by drilling a couple small holes and holding it in place with brads.  I did not have a bit small enough on hand to do that so I just went for it, making adjustments as the glue squeezed out.  (Since this is a banjo, I think the glue squoze out.)

Clamping the peghead veneer

Clamping the peghead veneer

 

Here is the veneer glued in place.  The edge at the nut seems to where it needs to be.  I need to refine the hole with some files to make it neat and even.  It will have a small cover over it, so it is not seen.

Veneer glued in place

Veneer glued in place