I really think that unless you're using "raw" materials for the heatsink you won't need to go as low as 400 grit, 600 should be plenty for a market released product, for a flat surface a piece of glass is recommended.
There is some debate about this, the actual goal is a flat surface, there are two schools of thought here with regard to a mirror finish, I subscribe to the "flat rather than mirror" school as it has been suggested that a completely flat mirror finish has nothing for the paste to "stick" to. A personal call I guess.