Charles,
What are you mixing the micro balloons with to make a sandable fillet? I have used 30 min epoxy but it is not sandable.
Steve
Steve,
What part of the model did you apply the Epoxy? Apply heat with a heat gun and you can remove it or spread it but I believe the mix was too wet if difficult to sand.
Couple of things.
First, I never apply fillers over bare wood. I think the "iron on" guys may, I'm not sure?
I treat the wood like most modelers do, 50-50 clear dope and dope thinner. I use only SIG dope and SIG Thinner adding more clear dope as you get close to filling the grain. Scratch it up before applying fillers. I board mine out a bit but I don't thin wood by over sanding.
The wetter the mix is the more challenging the sanding is. A simple given.
I only use 5 minute and 20 minute "hobby grade" Epoxy. From Hobby Shops or Hobby product suppliers.
Two cups. One with the Hardener the other for the Epoxy. I mark the cup bottoms, E or H.
Decide how much you need? Place a bit of hardener in one cup and Epoxy in the other.
Add a tad of Micro-Balloons till the mix is really dry but wet enough to stick. Mix each cup separately using a different stick for each cup mix. Obviously for filling, the dryer the better, still has to stick. To dry, add Epoxy to the E cup, to wet, add Micro-balloons.
I place a tad of yellow artists acrylic paint, a drop or two in one cup and mix. When everything is light yellow you can now mix the two together. Yea, you use a bunch of sticks, Starbucks sticks for free.
The color lets you know when the mix is over. You don't want to over mix because you'll loose application time. Important.
I don't know where your mix was placed?
You can put a piece of thin masking tape on each end of where the fill is going. No point in putting it where you don't need it. Pull the tape before it sets up. You can tell when it's setting up it gets tacky, I can wet my finger in my mouth then rub it gently on the edge to feather the edge if I get the mix at the right time.
You can put masking tape back on each side so you don't over sand to the balsa.
I use a good deal of the 5 minute mix so I can get back to work in a short period of time.
Spread it on with credit cards that have been canceled.

Keep in mind, many imperfections can be dealt with well after silk is applied and filled with 3 or so coats of clear dope or Deft Wood Sealer lacquer. Clear dope over open bays and sheeted areas or Deft Wood Sealer lacquer over sheeted areas, I've used both. Other modelers have also.
Then you have the high build primer over the cleared silk next, and as Robert says, "Most of it winds up on the floor." Last is the use of auto putty sparingly.
These wheel pant halves are for a TEXACO 13. A semi-wet, semi-dry mix. A tad of green blue paint to match the color of the fiberglass. Unnecessary but cute.
I did a wet skim with my finger on the left one, needed only a minute or so of sanding. The radius at the edge, I had a few layers of masking tape there, that radius was cut with a #11 blade in the tape before the mix was applied. The unneeded side of the tape was removed. This task was done while both halves were glued to 3/32 light balsa that had the correct outline for the scale wheel pants.
If I didn't have the balsa and the tape, I'd be there all day creating correctness for that wheel pant half. This was quick and easy. Done no sanding to the one on the right yet. More tasks still have to be done to these items.
I hope this helps.
Charles