Refinishing Cedar Jacuzzi Room

I am working on converting the jacuzzi room in my house into an office. The floor is done but I'm holding off on the rug until I finish dealing with the walls.
The walls are tongue and groove cedar panels. They are in pretty poor shape. Gouges, a couple dark spots, tons of scratches. plus they are just kind of dark and dingy looking, no smell whatsoever.
I am sanding them down and the cedar is very light. I was wondering, after I finish sanding (60 grit to 100 grit to 220 grit) how should I treat the walls? I was thinking of just sealing them with clear poly but if the smell comes back after sanding I would like to keep that.
If I want to keep it natural should I just leave them as is? Clean with mineral spirits? Wipe with some kind of oil (tung or mineral)?
Does anyone have any suggestions or experience with this?
Thanks... lg

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