Time is the important factor. If you try to sand it too soon, it will plug up the sandpaper and scratch the finish really bad. ALWAYS wet sand and use very light pressure, and use fresh sandpaper if it begins to clog up (sandpaper is MUCH cheaper than redoing the finish).
Keep your sandpaper very wet. Save worn out wet sandpaper for those final passes
It you use a buffer, it will be far less likely to burn through if you keep the head clean. Just run the buffer pad against the edge of something (like a work table) for every 20 or 30 seconds of buffing to get that hardened buildup off there and away from your guitar. And never skimp on buffer compound.
The main thing is to let that poly cure fully all the way down to the wood. If the temps of your curing area is above 80 or so, give more time than the product suggests.
Good luck. Summer is here and spraying and finishing in summer can be a headache.
I use very fine steel wool. And loversmoon, I'm pretty sure it is okay. Just make sure it isn't one of those minwax polyshades if it is going over paint.
Like Myaccount 867 said, steel works very well with a light touch. I think the grade is .001, but don't quote me. But like sandpaper, it will gum up if not completely dry, so be wary. Hope it helps