For proper adhesion of a primer, you want to sand around 240-320. You will get whats called a " self etching primer" which will fill in the 240 scratches and provide a super smooth surface. 800 grit will not give you great adhesion, and you will not see scratches from 240 if you do it correctly.
You then will BLOCK SAND with 400 to get it smooth. Then do another thin coat of primer.
For paint, you really should use a LACQUER, not an enamel. Enamels are junk. Brand is largely irellevant, but if you're spending 2$ a can, don't expect good results. The best "cheap" spray paint is the duplicolor line that diggr mentioned. Make sure you get the lacquer, not enamel.
So after you prime, do your base color of whatever you choose. Do a good 3-4 LIGHT coats to get even coverage, waiting about 20-30 minutes between each coat. If its not covered well after that, you should wait a day or 2 to allow the nitro to gas off. Then do another 2-3 light coats until you get it even, flat, and covered.
Since they are nitro based lacquers, they will dry in about 20 minutes, but let it sit for 24 hours before you tape stencils to it. When you are ready for stencils, apply them properly, and then do your painting. Leave the stencils on for about 15 minutes, and peel them off carefully. If you wait too long, the paint will burn in, and its possible when you lift the stencil, you will peel up the paint. Too early and the paint may run beyond the stencil. Start from the top, if you think its too damp still, then just wait a few minutes. If its starting to peel, take a razor to trouble spots.
The process would be the same for inverted stencils as well. Anything above 600 is for finishing work, not for in process work or smoothing.
When finished, let it gas off a few days before applying a clear (which you really should do). Same process, give it 3-4 light, even coats for about 3 days. You want it to build up, but you don't want it to run or have drying issues.