Sand the table top with an orbital sander. Start with a coarse 60-grit sandpaper. Sand in the direction of the wood grain. Finish with a fine 120-grit sandpaper. Remove all of the old finish so that the wood is natural in color.
Sand the recessed section of the table. Often this is more difficult to access because it is smaller. Small rotary tools and pointed sanders can help reach smaller areas. Vacuum up all the debris and wipe down with a tack cloth.
Sand the legs of the table using loose sandpaper if your legs are carved or curvy. Always sand with the grain of the wood and work from coarse to fine sandpaper.
Finish the inside of the recessed area first as it may require you to lean across the table for access. Stain or prime and paint the interior. Often designers use an accent color in the recessed opening to add interest to the table. Paint as many coats as necessary to produce the finish you want. Sand with fine sandpaper in between coats for a smoother finish. Allow the last coat to dry for 24 hours.
Cut chipboard to fit tight to the sides of the recess. Insert the chipboard to protect the recess while you stain or prime and paint the rest of the table. Stain with the grain of the wood, wiping off the stain with rags. Prime or paint with the grain of the wood. Allow each coat to dry completely. Lightly sand with fine sandpaper between coats.
Apply a finish clear coat to the entire table and the recess once the stain or paint is completely dry. Your finish coat should be designed to work with the stain or paint products you used for the table. Often finish coats can be sprayed for a nice finish.