yeah thats correct Mr Foster. Normally start sanding about 180 grit, then 220, 240 and 320 grit is normally fine enough for Dingotone, or if you are keen 400 grit. Wipe off all the dust and run your fingers over the surface and you can feel most machine marks and bumps/lower areas.
The Dingobass mantra is sand, sand, sand some more, then sand a bit more (or get the missus to sand haha).
Generally you are better to oversand than undersand as any machine marks are really highlighted by stains.
Don't sand past 400 grit on the body as it tends to polish the surface and the timber pores won't take the stain as well