Brian is no doubt referring to metal removing papers such as wet and dry, emery, etc, used in car body working.
As such it will work using powered sander, provided that the nails are soft steel and not stainless or hardened. If the wood is very soft softwood then yes pitting will occur around the nail.
Another trick, If you don't want to punch the nails then cut the heads off. Will still hold whilst adhesive sets.
Tricks of the trade are just that, tricks to be used in certain circumstances, not general usage such as kerf cutting on another thread.