I'm not sure but after reading, It's sounds like people are talking about 2 or 3 different issues on the white problem.
One is the chemical reaction that turns a haze white color to solid white depending on how bad it is. I've noticed that some glues do this more then others, and also some accelerators can cause the reaction more then others (I don't use any acc. like Arnot mentioned, and I also letting it harden well over night before sanding like He mentioned, that is when I've used It). Also Regardless of if thin or gel is used, If the coats are loaded up too thick, or too many coats are put on inbetween sanding, then that can cause this reaction to take place. Thinner, smooth, coats regardless of type seems to be the key, and every glue is different as to how many coats at a time you can get away with, before the reaction takes place. Practice with any certain type of CA will help determain the limits though. Also By wiping it on thinner for each coat, It lays down an more even finish, this makes sanding easier. The Lesser grit It takes to sand hills and valleys out, the easier It is to polish off without sanding through. If you go on thin, and do a good enough job then there are not as many areas to sand out, therefore you don't have to use such a aggressive grit. Wiping the excess off well, or going on thin as I called It, does have another drawback that sounds like some people here are on to already, I'll explain below-
Ok, doing thin coats, there is a fine line, you don't want to dry the ca out too much or you'll really have problems, but they would be obvious atleast. If you see a dry area then it started drying out, and might as well stop there and sand that coat off, but sometimes the coat can go on wet & shiny looking, with no seen issues, and still have those little white specs show up. They may not show up on the cue anywhere, but in a black colored area, probably because they can be seen easier due to the black background. That's the one that has given me trouble, got through the other issues, but still have that happen. I'm starting to think that loose fibres in the paper towels may be the cause of that. I've noticed the brands of paper towels seem to have different effects in this regard.
Another would be the sanding dust, so cleaning after sanding can sometimes help with that. A dusty environment can cause problems too. Anything on the cue before making a coat is gonna be embedded in the finish unless It's sanded out.
I've played around with ca's quite a bit, at first cheap ca, that sucked, the chemical reaction was out of hand, and even when I did a nice job, a month later It would start lifting around any metal, and didn't really stop any movement in the collar or ring areas. I finally found out that the expensive industrial stuff like loctite makes holds up better. I also have had It down to about 3-4 coats between sanding without the chemical reaction, the paper towel issue drives me nuts though. Sometimes I have no problem, and other times every effort to avoid It fails.
Just My personal preferences, For leveling rings It may be alright. The jury is still out on that one for me, but for sealing, I still like epoxy better when It will stick to the materials. I just have an easier time with it, and less work. The drying time is longer though, but then I don't have to do as many coats.
As a finish Ca will work, looks pretty good, and will shine up for someone that has no other choice or options to spray, but is really hard to be a perfectionist using It, and not all types are created equal. Most types I feel won't survive the test of time, other types I'm still not sure about yet. It's Much easier to spray and buff a cue with more perfection, then working with it though IMO. Just My opinion though. I'm not a CA wizard as Mike calls them

, because to be honest I'm really not a big fan of it for alot of things either, but I guess It's obvious I've spent some time messing around with the stuff on and off. Some people seem to have better luck with it then I do though.
Greg