Yes I have tried wet sanding with TO as well. As Andrew said it starts to cure and gets thick and messy. You end up with a not so nice result IMO. Much better to do a very light wet sand with water and a drop of dish soap between thin coats. As soon as the coats get to thick that's when things go down hill, and that's what happened to me with the TO as wet sanding medium. Much better to fill the pores with Timbermate before you start with the TO.

cheers,
Gav.