The problem with lacquer in this situation is that it is suggested to give the finish around a one month period to cure before you wet sand and buff. You can chop a week off of that, or possibly even two, but it's best not to if you can help it. I'm in agreement with Maiden, I think if you take your time and get it done right, your dad will love it regardless. In any case, my knowledge of the quicker drying finishes, such as poly, is very limited so I can't really help there.
You mentioned ReRanch, so you should have an understanding of the process and when to do the sanding. The tutorial there is pretty detailed, and the forum has plenty of info as well as knowledgeable members to help you out. And on that note, have you thought about using ReRanch materials? Their stuff is top quality. Water-based vs. nitrocellulose is really up to you, you can use either. As Maiden said, you can use Duplicolor, just be careful and mist the nitro lightly on top of that, until you build up a good layer, then you can move onto wetter coats.
I know there are some folks who aren't fans of rattlecan finishes, which is perfectly fine, but I see complete newbies turn out beautiful guitars everyday over at the ReRanch forum, so it is certainly possible.
Hope that helps!
CMA