The hammer method is not one I have used, but that's because I'm heavy enough to mash a Brooks right into shape. It's a sound approach to forming or stress-relieving leather, though. PeterPan1 gives a good description of the process. He's also right about oils vs wax, especially on a new saddle. You don't need oils on a healthy peice of leather - only to restore an older one, maybe.
Proofide is both beeswax and oils - very little oil, lots of wax. The oils are both animal (tallow) and vegetable base. That's why they tell you not to over use it on your saddle. It's good stuff when used sparingly, like Machka. Products like SnoSeal are all beeswax and won't over soften the hide - that's good, too.
All are best applied to a warm/hot saddle. I use SnoSeal only on the bottom side and let my body heat and motion bring it through to the top over the next few weeks.