It's SUGRU! I stumbled on this product on one of my many romps through craft sites and flickr photos. As soon as I saw sugru I needed to try it on my felting needles. It arrived in the mail today and I've coated all of my #38 star needles with it and will keep going with the other sizes.
I got five colors in their multi-color mini packs so there's enough in each colour to do several needles of each size. Yeah! I love it when I find something that is such an easy solution. Now to try to combine two and three needles into one sugru handle!