1.   After sanding smooth, the wall looked marvelous, smooth as glass.

2.   But before doing this, remember to fill in the plywood edges with a wood plastic and sand this smooth.

3.   Chips, I believe, can be filled with a liquid repair solution and sanded smooth.

4.   If the sponge does not come out all white, wirebrush the flaking parts, sand smooth, and apply the latex solid stain.

5.   The wood surface should be sealed, then either scraped or sanded smooth.