If you have an ACE or ACO hardware near you they rent out a floor sander and have a complete sanding system you can pick up with the sander. The sander and the wood finishing products (sandpaper sheets, pads, and finish coat) are all marketed by Varathane as a complete finishing system.
I've used this system to refinish several floors for multiple customers with great results, and it kicks up very little dust.

The sander is a vibrating unit as oppossed to an orbital, so it won't get away from you and it doesn't leave swirl marks. They have several grits from about 35 up to 120 or so that you can strip and then work towards a finished surface.

I always skipped staining and just applied the Varathane Diamond Finish product. I just prefered the woods natural tone.

While not cheap,around $45.00-$50.00, a gallon of the Diamond Finish goes a long way and it its extremely durable. My last customer had a 500 lb. piano that had cast iron casters and when we placed it back in the room, we ended up leaving a very light depressions in the hardwood. The amazing thing was that the finish did not chip, flake or even scratch.....just left runners in the floor.

Here's a link to a tutorial video about the system http://www.easy2diy.com/cm/easy/diy_dv_index.asp?page_id=35721042

Hope this helps.

Wanted to add that if you have a palm sander, it works great around the edges and in the corners.