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Water's fine, you don't need Alcohol or Lighter fluid. The Crox will settle in the bottom of the bottle after a while, just shake before use. Same goes for Diamond spray.

The best way to apply crox to wool felt is in liquid form. It's sold on SRD. Just spray, let it dry overnight, and repeat. Same goes for Diamond spray and CBN.

I have detailed instructions from a former member "ChrisL" who used to sell the Hand American Crox.
If you pm me, I'll send them to you when I get home. (I'm at work now)