I ran into a problem and am looking for a way to solve it.

I stained a sheet of birch plywood with Minwax (Oil Based) Wood Stain,
waited 2 weeks, then applied acrylic paint in some areas. I noticed that
on lighter colours the moisture from the paint drew up the stain and kinda
bleed through. But after I applied 2 or 3 coats of paint it seemed to be
fine.

After I finished painting I let everything dry for a week.

Then I applied Deft Gloss Lacquer. Now the problem arose. It seems the
moisture from the lacquer activated the oil in the stain and drew it up
again through the dried paint. So the white for example had brown
blotches.

So I will have to repaint certain areas, and lacquer again. I am hoping the the lacquer layer that is there now is non-porous and the blotching won't
re-occure.

Anyway, if I use water based wood stain it should eliminate this problem
as the water stain will completely dry unlike the oil stain. Correct?

Are there any draw-backs to water based stains? Or should it work just
as well as the oil based ones.

Thanks,

James