I've been using a leather board, a 4" wide 12" long piece of finished leather cemented to a piece of 1/2" thick oak board and another piece that's not. To my understanding as you draw the blade across the leather the leather being pliable enough actually comes above the edge line, kinda wraps around, but noy completely and removes the wire edge, also there is something in the finished leather that abrades the wire edge off. The use of a polishing compound smoothes/polishes the final bevel leading to the edge.
In some cases this is prefered, but in some cases, you want a toothier edge that comes without the polished bevel.
One of the biggest mistakes I see people make with a strop is that as they get to the end of the stroke they tend to lift the spine of the knife which tends to round off the edge, thereby negating the desired effects of stropping. the best way to avoid this is to draw the knife past the edge of the leather before lifting away,(if any one spray paints it's like not chanhing direction or letting off the trigger until your past the work piece).
One last thing, alot of people mention the sound of steel slapping the leather when stropping, but if you watch any of the old time barbers when they strop, right before the hit the end of their stroke, they relax the tension on the strop. in essence this accomplishes the same thing as described above, in not lifting until past the leather. The slapping sound comes, as they pull the strop taunt again before bringing the razor in contact with the strop.
Alright now one last thing,

I have had reasonable succes with valve grinding/lapping compound.