Rebecca, I've used Cedar wood oil on an equine tendon project. The procedure that I used for processing, I got out of the 1953, AFIP but, it uses 10% BNF, beings Xylene is also used in this procedure I would think that you could then thin it with Xylene. I have a copy from a book don't have the book title but the author was Brown, sorry I don't have the first name, was told that the book was a histology book.
The page is from the processing section and it list the advantages and disadvantages. I could fax you a copy if you would like and also a copy from the AFIP. 

Shelly Christenson
christen@vet.ksu.edu
KSU Diagnostic Medicine\Pathobiology

>>> Rebecca S Smith <bssvpisu@iastate.edu> 10/20/00 10:30AM >>>
We are doing a research project for mast cells.  Of course all the readings 
that the researching scientist has read say that Carnoy's fixation is the 
"BEST" way for preserving the mast cell for later 
demonstration.  Soooooooo, I've conceded to this idea.  OK, we'll use 
Carnoy's.  Now we get to the readings on processing tissues following 
Carnoy's fixation and we get all these spotty directions on the use of 
Cedar Wood Oil. (Slimy, Sticky, Gooey STUFF).  OK, we'll use Cedar Wood 
Oil.  What a mess!  As before mentioned, spotty directions.  Some 
references have mentioned using "thin Cedar Wood Oil".  No mention of how 
thin, no mention of what to thin it with.  The processing following Cedar 
Wood Oil is not really clear.
ANYWAY!  My real question for you Histo Gurus out there is 
this:  Why?  What is the purpose?  Did someone get this crazy idea because 
they had some Cedar Wood Oil in the back closet (for use on the family 
heirloom) and it worked and now it's gospel on how to do this Carnoy's 
processing?  I've read some references that just mention using "thin cedar 
wood oil" for storage of wet tissues and not using it if you're processing=20
right away!
If someone can save me from using this stuff, by giving me real referenced=20
reasoning for not using it, I will forever be in your debt!  Do you like 
Cookies?  Chocolate Chip?  Peanut Butter?  HELP!!!