Oh and to the other poster, my final product I am pretty happy with (it's able to cut paper, my test) and my wife like's the way it cuts the veggies (her test ). As to raising a bur, yes! I do it once with the 500x (on both sides) and then again with the 1200x (both sides). By the time I get to the 5000x I can no longer feel anything (should I be at this point?). Then I have some soft fuzzy block and sheet (that I bought from this site) that I rub the blade on when its all done.
You should be feeling progressively smaller burrs as you go up in grit #. By the time you get to 5k, it'll be small, but it should still be there.
I think you talking about the felt deburring block and felt de-burring pad. Take a look at Dave's instructions at http://www.japaneseknifesharpeningst...p/stropkit.htm. I'm not sure, but it sounds like you're using them a little differently from the what the instructions indicate.
No expert here, but when my mud begins to get a bit pasty I use a spray bottle and spritz a few time to keep things nice and moist. It's a bit less messy, especially if you are not working over a sink. Disclaimer: I do this because I saw Dave do it in his DVD
Make sure the mud is not drying out(it'll create resistence) and not building up too much(causing your edge to skate across the stone). Other than that, mud is your friend.