Depending on the size of the droplets you would normally wet sand with 320 (if there are really big ones), 400, 600 or 800 - I use Micro Mesh pads for most sanding that's 600 and finer. They are 3"x2" 1/8" thin foam pads (there's also a smaller size)with non-loading abrasive on both sides. The grits go from the equivalent of 600 to something like what 12,000 would be and last for months if you take care of them.)
You want to sand it as smoothly as possible, but cautiously so you don't go through the primer (easy to accidentally do on edges). The good part is lacquers melt into previous coats so they are the easiest coating to touch up.
Whether you use pads or paper be careful not to let and balls of coating, dust or anything else get under the abrasive - you can usually feel something caught or rolling around - if so stop right away and rise everything off.
I prefer sanding primers to a glassy finish - makes for far less work with the color coats and clear topcoats if used (and can help reduce material consumption). Some like slightly rougher textures - neither method is wrong, it's just what you get used to doing. I soak the pads for about a minute; wet-or-dry paper for 5-10 minutes.
I put no water on the surface, just whats transferred from the paper or pad. Too little water and it'll often feel kind of scratchy - in that case add a very small amount (1/2-1 teaspoon) of water. You should feel suction between the abrasive and surface, and you need very little (but very even) pressure on the abrasive. With paper I use small flat and curved 1"x2" blocks I've made and only use the paper alone in the cutaways and edges (I primarily use the pads, though).
After sanding wipe everything down with a damp towel at least twice; let it dry for a couple hours (average - longer in cold weather, shorter is ok if it's hot), then clean everything thoroughly with a tac cloth (a buck or so at Home Depot, most hardware stores and all paint stores). This is essential - it'll get any contaminants and residual dust left by sanding, and there's always some there that you can't see.
Then you should be good to go with your color coats. The only caution would be if you see damp areas in the control cavity sides let it dry until those are gone to prevent blushing.
“No Chops – Great Tone” ©