Hey Paul,
I used the water-based, clear gloss, Varathane Diamond Spar Urethane. Like I said, Rehd reported great results with this stuff. In fact, that's the reason I decided to try it, but...no such luck for me. I let each coat dry longer than the instructions call for, but it still looks slightly milky all the time and gets very milky after being wet for a while.
The other finish I used is called Crab Coat. It's made by CrystaLac. They make some great waterborne finishes for furniture/cabinets. Crab Coat is what they call a "short oil," it's "water clean-up, although not water-based." It also gets milky when wet for a while, but not as bad as the Varathane.
Maybe these finishes work quite well in very dry climates; maybe in humid climates they never really cure completely. That's the impression I have after brushing, spraying, sanding, buffing, and using the kayaks.
Pedro Almeida