One of the most common mistakes is using paper that is too fine and polish the waves rather than cut them off.
With that said, is a good practice to finish your filler and block primer with 180. Most people do it this way to avoid the possiblility that primer could shrink later down the road in coarse 80 or 100 scratches and show up in the final finish.
If you decide to use anything coarser than 180 for finishing filler or blocking primer, you must allow your primer to flash properly between coats. For this reason, I normally do 1 coat and then block it, two at the most. Sitting your parts in the sun between stages and before your final blocking with 320 is a great practice. I use a combination SPI epoxy and Turbo for blocking. I have no idea what would happen if you used one of those off-the-wall brands like PPG or Dupont???