I hate wet sanding, however, it is a necessary evil if you want a glass-smooth finish. For these two guitars, I'm trying a slightly different approach that will hopefully dramatically reduce the time I spend wet sanding.
What I did was spray 7 coats of water-based lacquer. After they dried over night, I dry sanded with 320 grit. Then, I sprayed another 7 coats. This morning, I dry sanded with 400 grit and began spraying what I anticipate will be a total of 5 light coats. The first is very smooth. If I can keep it that way with each coat, I hope to be able to wet sand with only 2,000 grit. We'll see, but I'm optimistic.