cisco said...
If you want achieve a DEEP gloss with oil based varnish, use Wattyl Instant Estapol Satin for the first four coats at least.
...or...use a clear sanding sealer, 2 coats, sand back & the grain will be filled (in most cases) and will provide a good base for any gloss level. The dust is probably as mentioned coming from your brush or small air bubbles. Thin the lacquer down & apply reasonably thin coats, although it's tempting to put a heavy thick coat on and as mentioned above, spray pots are much easier!