So taking it to a mirror finish doesn't give it that much more of an advantage? What grit of sand paper would you suggest taking it down to?
no.. thats just what the hardware sites do to look impressive
Mirror finish you are getting into theoreticals, trust me..
In reality the more 'cap' you sand off the processor and get it closer to the cores under that cap the better heat transfer and that can be dangerous because the i7 is not made like the old Q's
the goal is to bring both surfaces down to copper and get them to make as much contact as possible flat face to flat face.
I would say start with automotive 280 (or somewhere in there) and work your way up .. 400 then 600 is just fine.. you can go to 800 if you want to
The processor I normally do dry.. the HS I use a bit of water to help slide the unit easier but I dry sand the initial to get the major off of it first, then add water to the 280 and work up
Alcohol is used to clean everything up
sometimes I may add a touch of water to 600 to finish off the processor but do take care as that moisture can get up under the cap if you are not careful, use very little.
here is a real engineer showing the process on the CPU
http://www.thetechrepository.com/showthread.php?t=71