I did it when we moved into our house. Built in 1929, it has seen many renos, and several different carpeting schemes. The result was part hardwood, part carpets that we ripped up. We had to remove all the glue, and tons of a wax-like substance that had been used to polish the floors.
I used a rotary sander (drum sander is another name). It was difficult to do well, and if you stopped in one place for long, the floor was ground down too far. We also used an orbital type for the finishing sanding layers. It took quite a long time to do our house (5 rooms, about 1000 sq feet), but it was worth it. You can tell the job wasn't professional if you really look, but if I do say so myself, it is pretty nice. And for about $600 in materials and rentals it was worth it.
Whoever warned about dust ... spot on. It is crazy how much gets EVERYWHERE. Seal off other rooms/move sensitive items out of areas that might be exposed. Good luck if you do it!