I know a few of the folks here have done some and I just got talked into doing one.

Any advice on paint, lacquer, etc.

You should ask Abelincoln about it. I think he's done quite a few.

Really any paint will work, just clear coat the crap out of it. I stick with krylon csytal clear acrylic, but I use pretty much a whole can. Lots of thin layers

This one is already lacquered, I'm wondering if sanding it would make it easier to paint and for it to adhere to, soak in for a long life.

Hmm honestly I would sand no matter what. I would sand then primer and then begin work. This way you know all is done properly and wont have to worry later one if it will peal or not.

sand off the lacquer. as much of it as you can get. an easier way to go may be to see if you can find a board that is not already lacquered (will save you a lot of time). with the lacquer on there you run a risk of everything you do on top of it not adhering properly over time (which could result in sticky paint, peeling paint, or cracked paint).

i have found that having a solid base is the best way to avoid catastrophies at the end. just tape off the areas you don't want sprayed. i would use a good wood primer (i have been using some spray on primer from home depot for quite some time). several coats, sanding to smoothness between each coat works best for me. you could also use gesso if you want a slight rougher look to it. there is also a spray on gesso i have had some good luck with and it eliminates brush strokes.

and then like motor said, a ton of sealant on top of it. good luck!