building again, need paint & decal advice

[ginormous]

After a godawful long time (try nineteen-eighty-something!), I'm building a new ax.
I found a guy to rout a poplar body blank for me, and I ordered a GuitarFetish neck. I'm gathering parts from various sources.

My idea's coming to fruition, but I need to learn more about poly finishes and decals.
Before I put on a waterslide decal, should I use medium-fine sandpaper or 4-ought (0000) steel wool on the headstock?
My understanding is that the veneer on a headstock is thin to start with, so I just want to buff the shine down enough for the decal adhesive to grab on.
Would the steel wool be too much? If I use the sandpaper, should I wet sand or dry sand?

I'm on the rather low end budget-wise, so I'm not buying another neck if the finish goes bad.

[GuitarDoc]

Water slide decals are best applied to a smooth finished surface. You can use poly or lacquer but after several coats, wet-sand with 800-1000 grit sandpaper. Apply the decal. Allow 24 hours for all of the water to evaporate. Put on 2-3 "dry" coats of lacquer then about 3-4 more wet coats of clear lacquer (or 3-4 more coats poly), then level sand using 1500-2500 grit sandpaper. Then apply a couple more clear coats, sand if necessary and polish.

[The Dali]

100% what Doc said.

[Securb]

Yep, can not argue with Doc's advice. The only thing I would add is if you still see the edge of the decal after 3 or 4 coats don't be afraid to add a fifth or more. I would also advise as much time and patience between coats as possible. And also give a good amount of drying time before adding the tuners.

[GuitarDoc]

+1. Time can be your best friend.