OK, I've gotten the main bag piece and the gussets dyed. None of it has worked quite the way I wanted it to. I forgot to wipe the bag down with denatured alcohol before I started dying and then the dye did not work the way it usually does. Iron oxide dye is just steel wool dissolved into vinegar, it reacts with the tannin in the tooling leather to create a grey-black color. The color change is usually immediate, but on this leather it took longer mainly because it just wouldn't soak in. Thinking about it, I had the same problem with getting the water to soak in when I did the tooling. That means it is going to be a pain to get it wet enough to wet form and sew together. I'm probably going to have to put in a bucket and leave it to soak. I guess next time I need to get the more expensive leather to work with since it would be better quality.
I'll try to get some pictures once everything is dry and post them.
I just checked on the pieces and there are areas that have dyed unevenly and look like water stains on the main bag piece. I'm starting to get very discouraged at this point because it seems like after a great start with how the tooling turned out, nothing else has worked out as well. My only hope now is that the neatsfoot oil that I'll be using for a finish will even everything back out.