I looked into this some when I went to refinish the fender, before I got the les paul. I just asked the people I was working with at the studio, and the everyone told me to avoid paints, to just stain it, and use as little clear as I think I can get away with.
Not sure though... I googled and this looked good:
http://edenhaus.com/Paint%20Shop.htm
I'll keep looking around, if I find any really good information regarding guitar paints/painting procedure I'll post it up.
Good luck! That thing needs some love!