Tom,
I think you are under sanding your work. (If there is such a term.) I generally sand through 600 grit, and then switch to micro mesh through all 9 grits of micro mesh. If you wish to use lacquer, seal either with CA or the appropriate sanding sealer. If I wish to get a really good finish with lacquer, I spray at least 7 coats about 15 minutes apart. After spraying each coat, I hand turn the lathe for a minute or two. Then, I set the pen aside for a week to cure. If the coats are sprayed well, I use plastic polish lightly, TSW and assemble. If I didn't spray well, I use micro mesh lightly before switching to the plastic polish. Did I come up with this method? Nope, learned it from a turner far better than I'll ever be. Are there other ways to use lacquer? Of course, this is just the method that works for me.
FWIW.