Yes, you can use the water slide decals. Be sure to spray them after printing, or the ink will run. On light wood you can use the clear, on dark wood use the white backround cut into an oval or other decorative shape. I've also used it on corian.
I put a couple of coats of thin CA to seal the decal, then as many coats of CA/BLO as it takes to build up enough finish to cover the edges of the decal so you can't feel a ridge.