Watched my buddy try this with some warped scrap pine last month. He didn't check for twists first, lol. All his new handles cracked when he screwed them in.
Oh I actually just read a great tip about this on a woodworking blog the other day (not that I spend all my free time reading wood blogs, but you know how it goes). They were saying that if you're really trying to save money on a project like this, you can sometimes find free sample jars of wood finish at hardware stores if you just ask nicely. Some places give them out for color testing, and you can get enough for a small project. Also, plain white vinegar mixed with steel wool can make a decent DIY wood stain if you let it sit for a week or two. But yeah, your point stands - the glue is the tricky part since you really shouldn't cheap out on that stuff, especially if the handles are going to see any real use.