In my earlier days of overclocking (and when really bored!) I did a bit of lapping, used wet'n'dry sandpaper in various grades all the way up to about 1800grit, then I used some metal polish to produce a mirror finish (then used a load of white spirit afterwards to remove any traces of the polish).
Now I don't really bother unless the heatsink looks particularly warped etc.
I was reading a post at xtreme systems where a guy had tried different grade finishes and found to his suprise that he got the lowest temps using 800grit.
He went on to surmise that maybe the more shiny/polished finishes were actually reflecting the heat rather than transfering it? (sorry no link atm to this post).
I think unless you have a really badly produced/or damaged heatsink lapping should be left well alone, until your any good at it, because if done badly (angled) you can make the heatsink worse.
As regards the mirror finish (using polish) I'm still not sure myself, but next time I get the old sandpaper out I will try the 800grit finish to see myself.
[edit] here is my old AERO 7 Lite that I lapped. .