Sanding the inside is only needed if you are planning on painting. If you are wanting the chrome, then no sanding. If you are wanting to paint I would not advise painting wo sanding because of the risk that the paint will probably not stick over a prolonged amount of time!! As far as the adjustment..... Are you talking about using your adjustment screws??? You could but more than likely you would use all of the adjustment to kick the headlights out far enough to get the beams straight out in front of the car. Then your headlights will look funny being kicked out so far. The reasoning for having the projectors face out a bit in the housings is to ensure that they will be facing straight out in front of the car with minimal adjustment from the adjustment screws. I don't even know if you would have enough adjustment in your screws if you didn't make sure the projectors were facing outward. It seems like to me, although I did grind down the inside where they would face outward, that if you can get the proper angle when grinding down the back outside of housings that you could avoid grinding down the inside, as the back would have the proper angle already there so when tightened down using a flat washer with the nut versus the concaved washer, it would cause the projector to tighten into place correctly. Idk if that made sense.