Wet-Sanding

Charles Neil has an awesome video that explains this on his site. I highly recommend watching it along with all his other videos as well. He has a TON of knowledge and shares plenty of it in his videos. You can also find him on YouTube under InTheWorkshop. Really good stuff.

I also recommend using water or soapy water and avoiding oils. Just use a small brush and apply finish inside any holes or other areas that may absorb water, or plug them if necessary. Oils will cause you a NIGHTMARE if you end up needing to recoat for any reason. As well oil "fools you" into thinking you have a better surface than you do, as it will mask scratches and defects.Oil doesn't wipe off like water, and will make a poor surface shine. When it dries in time, it looks like garbage.

DocFletcher, There is no issue at all with rubbing out a veneered surface, such as plywood or veneer over substrate. You are not sanding the wood, but the finish. The key to this is making sure you have enough of a film of finish to actually rub. Water base finishes build better than oil or solvent base, as they have a higher solids content. One good rule to go by, if you would use 3 coats normally, use 4 if you plan to rub the finish. This will assure you have something there to rub.

How would this finishing process work with a thin veneer plywood surface? If not performed as stated because of the veneer, how could the process be modified to work with veneer?

I recently tried this process, on a cabinet door frame that I dye stained and finished with spray lacquer, with excellent results. I liked using the water with soap, but I would recommend using mineral oil when performing this task on any project where your finishing over holes,( such as holes previously made to accommodate door handles hinges etc.), as the water tends to raise the grain around these areas.

Formby's lemon oil treatment works better than detergent water for sanding & doesn't require waxing afterwards.