I have to start by saying that I've never done this on a TR, but I have on many other kinds of cars and so far it's largely been variations on a common theme.
First, you really shouldn't use grease. Soapy water is much better--lots of soap in a little water. Liquid hand soap is good. You can also use glycerine if you have it.
Second, I wouldn't sand the bushing, unless it's absolutely clear that there is no other way. If the bushing is hard to insert, you usually can improvise something. A piece of tubing, for example--split it lengthwise, slide in the bushing, and use some kind of clamp, maybe even a couple hose clamps, to close the gap and compress the bushing. Then press it out of the tube and into the arm. Use lots of soap, of course.
Suspension bushings inevitably are hard to insert, because they have to be held firmly in position. They work by flexing as the arm moves, not sliding. In some cars (like my TD; maybe the TR too) they are not too hard to install and are compressed and tightened when you tighten the bolt that holds them all together. In others (like some in my Porsche) they are simply a really tight fit.