As for grit, I think the original thread said to start with something rougher (not rough, however, by sandpaper standards), maybe 200, and finish with really fine, like 400.
For polishing, I found my Home Depot had a Dremel kit for about $12 that included the polishing compound, numerous cloth attachments, and some other cleaning attachments. I bought this, but haven't used it yet.
-foomench