To be honest, I would ask the paint guys what they would feel best with.
They're the ones that will be squirting the paint, and having to deal
with any issues after that.
Opinions will be all over the place for the best method to remove the
paint. I personally prefer sanding, tho it takes forever. For me, I
stand less chance of screwing something up that way.
If the paint has damage, such as you described, just block-sanding will
not give you a good paint job in return. Macco, and Earl Sheib paint
shops do them that way. It'll look good for a while, but then you'll
wish you had gone a different route.
You also have the decals to deal with....that's a whole nuther problem...
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Joel Adams
C3VR Lifetime Member #56
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"Money can't buy happiness -- but somehow it's more comforting to cry in a CORVETTE than in a Kia"