Hey Don,
I know you posed the question to Gamera, but if it's OK, I'd like to chime in with an answer.
As far as sanding between coats for a NMF goes, here's what I do. I use Alclad's proprietary primer as a base coat. Once it's on, I like to wet-sand with a 3200 pad. The Alclad primer goes down pretty smooth on its own, but I like to wet-sand to make sure it's butter smooth and to even things out. If I need to, I'll respray the primer; touch-up any spots that I sanded through. Then, I'll wet-sand again to even things out. Once everything's nice and smooth, I'll spray my first light coat of Alclad. Again, wet-sanding to make sure everything's even and smooth. (Notice I keep repeating smooth?)Then I'll spray a second light coat and repeat the process. Usually, I'll continue my NMF with a third light coat, followed by a final wet-sanding pass with a 4000 grit pad. Finally, I'll spray again and finish with wet-sanding again with a 6000 grit pad. Yeah, it's tedious and a bit repetitive. Might even be overkill and wasteful, but I've been very happy with my NMF results.
Hope this helps! Good luck with SFS. I think you might be able to salvage her with a good base coat (primer) and some sanding. Good luck!
-O