Hello and welcome to diyrepair.
If you're sanding to the point the tape is showing back thru you are definitely over sanding. Is the tape staying on the wall, not lifting along it's edges? If so sand the joints down smooth, then brush off any excess dust from the sanding. If you are wanting a smooth finished wall you need to apply two more coats of mud over the seams. You'll need a couple of different sized drywall knives, use a 8" or 10" for the first coat and a 12" or 14" for the second coat. Take your knife and load it up with mud and use it parallel to the seam or joint to laod the joint up with mud. Hold you knife with the thumb and pinky and the three middle fingers extended behind the blade supporting it. The knife should be at about a 40 degree angle to the board when you're running it down seam. Start in the middle of the seam/joint and work towards the ends. The more angle you hold the knife at the more mud you will be taking back off the wall.
What kind of mud are you using, all-purpose or light? I'd recommend getting yourself a bucket of light compound for use for all but the taping. Also did you thin and mix the mud before putting it on the wall? The premix stuff needs to be thinned down with a bit of water until it's nice and creamy, kind of like soft-serve ice cream. Use a drill and a mixer paddle for this.
Hope that helps, post back if you've still got questions.
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