That is so cool!!! I love it. Really great idea for using a piece of an animal that would otherwise go to waste. I'll bet you could have some buyers for them if you decide to market them. Did I mention, that is a really neat project.
Looks like your new machine is working out great for you. I am hoping to purchase one of those machines in the near future. So this topic is especially interesting to me.
I use Gum Tragacanth on the backs of my unlined belts and smooth them up with a piece of Plexiglas and then finish them with Fiebings Tan Kote. I don't have any trouble with them bleeding off on clothes.
More great looking stuff. The photos were a bit fuzzy but from what I could see it looks great. Do you have a center piece along the edges to keep from cutting the lace when the sharp blade is inserted in the sheaths?
I do a lot of lacing and usually use the triple loop stitch. Lacing looks nice.
Your leather work looks really good to me. I think you are doing an excellent job. I'm sure some that are more experienced that I am will be able to give you some pointers. You knife sheaths really look nice.