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A satin finish is nice. It works best if you go higher and then back down. So for example you would go past 2000 and on to steel wool and polish maybe even just polish. Then you would take a piece...

any of the sand paper that is marked wet dry will work just fine.

If you are using wet dry sandpaper you are using the right stuff. It is easy to wreck a razor with a dremel. They have their place, but it isn't sanding blades, I always back my sandpaper with wine...