I get the 40/80 grit Black diamond at TSC. Our TSC here carries 3 grades of it, but that seems to vary by store.
Also as far as blasting the resist off, make sure you're not holding the nozzle directly against the surface, and also that you've applied it correctly. If the surface isn't clean, or greasy in any way, the vinyl won't hold at all. I prep and apply just like I would when applying a decal to something.