First and foremost, your final project will only ever be as good as your prep work. Make it perfect before you ever touch finish. Do not sand bare wood past 220 grit. This is contrary to most of the advice you will find on the internet, but they are all wrong. Every finish manufacturer in the world will tell you that sanding bare wood past 220 will negatively effect finish adhesion, and they are right. Never sand bare wood past 220.
I try to avoid sanding color coats (the exception is when dying fancy maples, but that is a whole other thing). Too easy to mess them up. On the other hand, if you apply your color too heavy and get a sag in the finish, you have no choice.
For clear, I spray a few coats (4-8, depending on how you are spraying - I use a process called double coats, so I do 4 of those), wait until it is dry (depends on your finish - for lacquer, one week) sand it until it is about 95% level with a lubricated dry 320 grit; spray another 3-8 coats, wait until dry, and sand until it is dead level; spray another 2-4 coats, and wait until it is thoroughly dry (with lacquer, about a month), and wet sand with 600 and then 1000 grit wet or dry, using soapy water as a lubricant. It must be perfectly level. Then you can buff it out. I use a big buffing wheel, you probably don't want to spend that much money.
Somewhere around here I have a much bigger description of my process.
Gabriel