I found that on the hull of my Chesapeake 17, it took the initial coat to wet out the cloth plus three additional (thin) coats of resin to get things as smooth as I thought they should be...even coat #3 was "telegraphing" a bit of weave. The sanding with 100 grit between coats did help (thank (diety of your choice) for hook and loop sandpaper).

For my next boat, I'm going to try some of the 3.25 oz. "satin" fiberglass cloth from Raka (propably two layers). I've heard that the satin is tougher to wet out without trapping bubbles, but hopefully it will "fill the weave" with only one additional coat.