Just a couple of suggestions for finishing: I use 3M film backed belts that come in micron sizes...60, 30, 15, and 9. These are used for polishing and not stock removal and are relatively inexpensive. I usually buy online from TruGrit. The 9 micron will not give you a mirror finish, but close to it. I then use a cork belt loaded with the white compound to polish the blade from there. Some smiths say to not polish before etching as they think it muddies the etch. I haven't found that to be true. I wipe the blade using lacquer thinner, then scrub with 409 and scouring powder before etching.
I etch using ferric chloride that I buy from MicroMark (on line). Their ferric is much stronger than R.Shack and about half the price. I dilute at least 1:10 distilled water, sometimes greater as I like a slow etch. After 10-15 min, I pull the blade out and sand it with 2k grit paper and Windex. This polishes the more noble 15n20 highlights, then back into the etch.
This is the only hand sanding I do.. When finished, I neutralize by scrubbing with baking soda on a sponge, then rinse with water and spray Windex (with ammonia).
I never grind using 36 grit to start. It will leave micro scratches the never seem to come out. Also, I have work lights on my grinders use halogen spot lights. They make a big difference.
Steel that has been heat treated will etch differently (better) than than that which hasn't been.
Hope this helps.
John