I think the original Titebond is supposed to be easier to sand than II or III. I do not think any glue (on balsa) sands very well. I swear I can sand the balsa from under the glue without affecting the glue at all. Titebond II is somewhat water resistant and III is more so.
If you have a Hobby Lobby (the craft store) in your area, they usually stock thin, medium, and thick CA. They usually have some balsa, basswood, plywood and other things that you might find useul.
Power tools
This little cordless screwdriver works great for model airplanes. My brother has it. It comes with a drill chuck.
http://www.amazon.com/Milwaukee-2-4-...797316&sr=1-12
This one is more powerful, bigger, heavier. It is cheaper, and was available at Home Depot when I was shopping. I had to buy the drill chuck as an add-on
http://www.amazon.com/DEWALT-DW920K-...797676&sr=1-24
A rotary tool (Dremel or other brand) with flex shaft attachment is nice to have
http://www.amazon.com/Dremel-3956-02...0798046&sr=1-4
I bought an IV pole from a medical supply company to hang the tool. With the height adjusted so the end of the flex shaft is about a foot from the floor it is pretty convenient to use. I can roll it around my work room easily.
I got the $99 class Ryobi drill press, disc/belt sander, scroll saw, and band saw from Home Depot. I use the sander and drill press more than the saws. For kit building they are really luxury items that see limited use. For crash repair (making new parts) the saws do come in handy. If a person decides to cut his own kit (from purchased plans or an original design) the saws would really be useful.