OK, it's been a little while since an update. Sanded down the binding flush to the body and sanded down the body (width-wise) that extended beyond the binding. Looks an awful lot better than when I first took the tape off. Lots and lots of hand sanding.
Glued on the fretboard after filing and sanding down the binding to match the height of the board. Dismayed I didn't get high enough binding for nibs... oh well.
Next, finish sanded the shape of the neck and sanded down the binding to match the thickness of the neck. Also, used 1mm green celluloid pick for the side dots. Used a leather-hole punch to make the dots, drill-pressed the holes, and super-glued them in. Really easy to do and quickly done. Then sanded down the dots flush with the neck.
Finally for this past weekend, glued on a head-stock veneer. Nothing cool or classy, just simple craft-store plywood. Next one, I'll use some decent wood.