Position the fence on your table saw ¼ inch away from the blade. Position the blade 1 ½ inches above the table. The blade will stay in this position for the entire project. Run the 2-inch-by-6-inch-by-8-inch oak board across the blade so that the 8-inch edges are perpendicular to the fence and one of the 6-inch ends is positioned against the fence. You will end up with an 1/8-inch groove that is 1 1/2-inches deep and 6-inches long.
Move the fence so that it is 1 ½ inches away from the blade--this will be 1 ¼-inch from its original position in the previous step. Run the board across again using the same process as the previous step. This will create another 1/8-inch groove that is 1 1/4-inch away from the first one. Continue moving the fence in at 1 ¼-inch increments until there are six 1 1/2-inch deep, evenly spaced grooves in the board. Your two outermost grooves will be spaced ¼ inch away from the 6-inch long sides.
Lay your board flat, with the grooves on top and horizontal. Drill a 3/32-inch hole that is 5/8-inch below the top groove--the one that is closest to the end--and 5/8-inch away from the left 8-inch edge. Drill another hole in this position, but 5/8-inch away from the right 8-inch edge. Rotate the board 180-degrees, and repeat this process. These are your pilot holes.
Drill a 1/4-inch deep, 3/8-inch hole into each pilot hole.
Sand down your keychain display rack, wipe it clean with a tack cloth, and apply your wood stain. Let the rack dry according to instructions.
Position your keychain display rack on the wall so that the grooves are parallel with the floor and facing away from the wall. Use your level to ensure that it is horizontal. Screw through the pilot holes and into the wall. Insert the loops of your keychain--or the keys themselves--into the grooves. The rest of the keychain will hang down from the rack.