Results of the experiment
I had a 1800 x 1200 sheet of 7mm ply to be painted, for use as a backboard for a large toy shelf, so I tried two methods, based on advice from KJ401. Both use water based acrylic 3 in 1 primer - sealer- undercoat.
Side A is the best side, side B is fairly rough
Side A:
Wet the board, sanded with 180 grit and then used Timbermate to fill the obvious cracks and grain and knots. Then sanded with 180 and 320 grit paper, before spray painting. Two long thin cracks showed up that I had not seen previously, but that was the only problem. It was quite a smooth finish.
Side B:
Sanded this fairly rough side with 180 sandpaper, then quickly slapped on some Wattyl Sanding Sealer I had left over from a previous project, let it dry for 2 hours, and then sanded with 180 and 320 grit paper before spray painting. It turned out to be a fairly rough finish, as expected from my rough sanding effort, with a fair bit of grain showing in places where it was really rough, but not as a result of raised grain from the water based paint, but from lack of thorough sanding. It would have been better if I had a) done a much better sanding job and b) applied some filler across the whole side to fill in the rough bits before painting.
So, not sure what I have achieved with this little experiment, as I was not comparing like with like - Side A was quite smooth compared to Side B, but certainly the sanding sealer prevented the raising of the grain by the WB paint on side B.
Does anyone know of a good filler that can be applied in a slurry form?