A: Yes. Sand the wood first before filling. The worm holes get slightly wider the deeper they go. If you fill prior to sanding, you run the risk of having filler fall out. You can thin it with water to the consistency needed for any job. Be sure to seal the wood, since the filler is water-based.
Q: I have pre-finished rosewood floors. Can I use GoodFilla to fill cracks without having to stain it?