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Lets see if this works... Posting from my phone, but, took this pic of my freshly cleaned, body color matched, now no halos and with the blackout spray on the turn signals this morning... its rainy and a little glare, but they look awesome imo...
Sand as in the housing? No you don't need to sand it. If yo you will prolly end up cracking the housing as it is very fragile.
The primer you use depends on the color you want. If you want a bright color than you should use a white primer. If you want a dark color, stick with a black primer. If you just want black, I would say just paint it flat black and you should be good.