What to do for paint removal on wood?

You cannot remove paint without very expensive chemicals ($50 per gallon for coverage of 75 s/f per gallon) and a ton of sanding. If the plan is to put down a semi-trans stain you'll be at that job for a long time. Best bet is to wash with some bleach and TSP. Neutralize, rinse really well, coat with oil based primer and apply a coat or two of latex solid stain. This is not the type of job you want to discount unless you need the experience.
 
Using excessive pressure on bare wood will cause damage. If it is cedar it will be soft in the summer growth rings and is very easy to "groove" out places. Follow the above mentioned procedure for a paint prep cleaning.
 
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