Eric, this is the one thing that I am worried about. For now, I am going to use a bucket of water under the grinder to hopefully catch the majority, air filtration system hanging from the ceiling to collect the fines, and I have been trying to come up with a collection system for when I do the handles. I have been looking around Home Depot and have found some interesting parts in the A/C section. I was thinking of getting something similar to what Bob Loveless had under his grinder in his video but using a shop vac for the suction. My plan is to start grinding and fix the issues as they arise. I will also be putting up a 4'x8' piece of plywood behind my bench to protect the wall.
My wood bandsaw is going to be on a bench with wheels so I can pull it over to the doors and make my cuts, using the shop vac attached to the exit port of the saw and hopefully directing the rest of the debris outside.
Hope it doesn't get too crazy in there, but I have a feeling that it will. I am hoping for the best.