Man, that flame looks awesome Slayer! I hadn't considered one of these kits but you are turning my head. (damn you.)
If it were me, I wouldn't use steel wool over DT. its too risky if its not totally cured as little fragments of steel get stuck and then its a pain to get them out.
If sanding DT at all, I use 1200 or 2000 grit and lightly sand in one direction. if you get any balling up of stain while sanding, its not cured, just wait a little longer.
Good luck