It is not actual binding or real paint, but just the exposed maple top. This is what I did...
Because the nitro is so thin on these faded tops, it was very easy to sand. So I put painter's tape as a guide around the side, where the maple cap stopped.
I then cut very thin squares of 100 grit sand paper and took away the side nitro and red paint.
I went over the guitar again to give the binding "depth". I angled the sand paper on the top of the guitar to take away a little bit of paint from the edges, to make it look like it had some thickness.
I moved to 320 grit sand paper to smooth the edges.
Now that just the maple cap was showing, I used clear coat to protect the exposed wood. One thin coat, sand, a thick coat and another sand.
One last 320 grit sand, wax, and you can't tell it was after market.
I'm very happy with the results! I'll try to get some better pictures up soon to show it in decent light.