I've used steel wool and I've used Flitz polish on frets. Recently I tried some Gorgomyte. I doubt I'll be using anytning else again. It polishes the frets and reconditions the fretboard at the same time. Cleans up easily too.
Like you, I completely disassemble any used guitar I get, including removing the tuning machines in most cases. Cleaning is with a damp cloth first, followed by a mild polish if needed and then spray wax. I tend to use Dunlop guitar chemicals.
After that, I vacuum out the inside, clean the fretboard as above and put strings on it. From there I do the minimal setup that I feel comfortable with. If it needs more work, it goes to a guitar tech.
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