Hi Canada.
Great choice of kit. the LP-1SS is great!
Feel free to have a look at my LP-1SS build diary. http://www.buildyourownguitar.com.au...ead.php?t=4515
I did not sand the spalted cap (on the body and headstock face) at all at first, instead I applied ebony timbermate, then lightly sanded the top with 320 grit then 400 grit (so as to ensure that i did not sand through the veneer).
I sanded the Mahogany (back and sides of body and neck) with 180 grit, 220 grit, 240 grit, 320 grit and 400 grit to remove all machine marks first, then applied ebony timbermate and sanded back to pop the grain.
I then polished the binding with 0000 steel wool, 1200 grit and 2000 grit before taping off for staining.
The timbermate sealed the wood grain enough. No sanding sealer used.
I then stained the body with Karijini red Dingotone. I understand that you can't get Dingotone over there yet so I'd probably recommend getting colortone. There was another type of dye easy to get in Canada that one of the forumites put his hands on but i can't remember. Any stain of your choice.
I then finished the entire guitar with Tru-oil.
Good luck mate!