So i'm planning on bringing it to my wood shop teacher tomorrow, to sand off where it says "Squier" and figure out something else to put there later. Maybe "Fenderstein" Or "Frankensquier"(That's all just useless information that I felt like including.)
But what i'm thinking about doing is unbolting the neck, and taking it apart while i'm at it, sanding the entire body piece down (Because you can see through the finish that it has some wood flaws) and hand sanding it myself to help make it smoother. Then i'm going to primer it, and paint it the decided color of the poll. (I would like your oppinion on which to go with.)
While i'm doing that, i'm going to look into getting some active pickups for it.
I plan on making this kind of an ongoing thread, and will include pictures as I go.
It's two in the morning so pictures of the guitar as is now (4/22/200 cool will come tommorow. Or rather this afternoon.
EDIT: 4/23/2008 12:35 AM
Here is a picture before disassembly. (I forgot to take one of just the Squier, so this is the only one I have.)

And here is a picture post disassembly. (Yes, i'm aware my blanket looks retarded)

STAY TUNED SPORTS FANS, MORE TO COME!!!
I plan on taking pictures just before, during, and after sanding, to show you exactly how I did it.
These pictures should be up sometime during the next week.
EDIT: 4/26/2008 5:27 PM
THE POINT OF NO RETURN HAS ARRIVED!!!
I've gotten my first little bit of finish/paint off of the body. I've also sanded down the headstock, and gotten rid of the S/N. I plan on this guitar being completely one of a kind, and don't want it to be associated with the mediocre "Squier" name in any way. I've also gotten rid of the stamp at the bottom of the neck. (The bolt to part.) So there is no possible way of identifying it as anything Squier.
Picture of the latest action:

BTW, a powersander will be your best friend in one of these projects. I would use paint thinner, but I don't want to risk causing permanent damage or possible decomposition of the wood. I'm going to use a power sander for the front and back of the guitar, and hand sand the edges.
ALSO, seeing as how I can't have two poll's, I have a question.
Should I paint the front of the headstock to match the color of the guitar, or stain it with ebony to match the fret board? PUBLIC OPINION GO!!!
EDIT: 5/1/08 2:59 PM
Yargh! Sorry guys, I keep getting hung up on other things, and havn't had much spare time lately. I am still working on this and don't plan on giving up. Updates to come soon, I SWEAR!!!