1/16" of an inch is just about perfect. I was looking at physical samples today at a local WoodCraft retail store. Met a REALLY cool guy who just started working there, and he has been building and finishing guitars for 10+ years... he really knows his stuff. He has a BIG shipment coming in.. thuya burl, quilts, zebras, and he is going to call me when the come in and let me hand pick which one I want!!
After seeing the varying thickness of the actual veneer (impossible to gauge from eBay auctions) 1/16" - 1/32" is absolutely perfect. It is very pliable, bends very easy, and can definitely tolerate between 3-5 LIGHT sandings in between stains.
BTW. I am currently in the process of doing a project on an Ibanez 7 string RG7621 that I bought used. It was really beat up when I bought it, and the guy even carved some words into the back. I have the body completely stripped, and it is now in my garage with it's 4th coat of Sand/Sealer drying ready to be sanded with 320 - 400grit, and then painted with the BIN's white primer shellac.
Photos of the entire process can be seen here:
http://home.rmci.net/ampage/project
I also scalloped the fretboard from 21-24 and you can see that here:
http://home.rmci.net/ampage/project/scallops
I am not sure which veneer I am going with yet, but that is a long ways away, at least 7 days before I will be ready to do that. I am taking my time, doing this right, and allowing everything to completely set and dry, and being completely **** about sanding and getting the prepped product as close to perfection as possible. I think the key to a wicked looking guitar is all in the prep work of the body... that, and a LOT of patience!