Don't use steel wool on wood you intend to apply a finish to.
Also don't use it if it seems to pull apart on the grain of your wood (or circuitry for that matter..........sorry

). Go back to sandpaper and smooth some more, then try the steel wool again. It will rust from your sweat, or finish and discolor the wood. I find rust patterns wood very beautiful, but most consider it an eyesore. On curly or figured woods I like to make a rust and soot rub with some oil finish.
Dave is right. Lubricate your steel wool with mineral spirits. It will dissolve mas crap on the handle. Then wipe with tack cloth, and blow off with quick blasts from the air compressor.
I haven't handled any Neem yet, but I saw that it is a light wood. Is the grain open or closed, oak is open (large pores), and maple is closed (small pores)? If the grain is open you have a choice: whether or not to fill the pores. If you don't the finish will have dimples (I find them charming) rather than being smooth as glass. That is unless you put on LOTS of coats. I read in the FAQ that someone put ~70 coats of Tru Oil. Seventy coats of any finish will fill the poors. Fillers are easy to use and would save you at least 50 of those coats even for someone who wants so much depth in the woood it hypnotises you! They also highlight the pattern of poors. Ever filled some old oak with a white filler on one half, then a black filler on the other half. What a difference. Use it on mahogany. WOW! If I had neem I'd pick black filler to darken it a little and bring out the grain. Then finish with several coats of whatever your favorite happens to be. Right now I'm trying the tru-oil finish, but I've heard someone say Spar varnish was good too. When I worked refinishing sailboats with the father-in-law we used lots of spar. It is very good in the elements and will even last a year or two outside in the ocean air, sun, and rain.
Man, I got winded there.....sorry.:foot:
Andy