Randy,
Just did a search at Staples and they have 51 Pentel pencils. Yes, there's really only one model that everyone uses for conversion to wood.
http://www.woodturnerscatalog.com/frames/frameset_pen_projects.html
http://www.staples.com/Catalog/Browse/Sku.asp?PageType=1&Sku=499673
In .7mm the correct penil has on it: 0.7mm Pentil P207 and is only available in blue. 0.5mm is black, sometimes also green. 0.9mm is yellow.
There's another Pentel pencil that I think will also work:
http://www.staples.com/Catalog/Browse/Sku.asp?PageType=1&Sku=499566
It's the Pentel Forte model A57 in 0.7mm, also blue. I would expect it to take different size drill bits, and in the conversion you'll either lose the eraser or have to accomodate it in wood. The reason for considering it is that it's only about half the cost of a P207. It's also larger diameter, and the wood barrel will have to match the pocket clip, so if you want a larger pencil it would be something to consider. I think it's available in all the common lead diameters.
Hope this helps,
Bob S.
http://members.ispwest.com/txbob