As someone else mentioned, a fan in the window to maintain negative pressure and vent fumes would be a good idea (I did this in my garage and it kept the fumes out of the attached house.

Another measure that really helps with the dust is to use an air filter. Check out the new one by Delta, or there is one by JDS at http://www.sandingcatalog.com/jdsairtech.htm . These do a fantastic job of keeping the dust out of the air (also helps at varnish time). They offer an optional charcoal post filter that might (I make no claims since I don't have one) help with the fumes some too.