Li Kao has been there, friends, and knows. I too have been there, and I have only a few things to add.
Making filo or phyllo as thin as the frozen stuff is impossible for mere mortals, so I too buy it in that form. I wholly concur with the crucial 24-hour fridge-thawing, to which I would add 1 or 2 hours out of the fridge to get the stuff to room temperature. Phyllo at room temperature is easiest to work with.
Li Kao uses plastic wrap under and over the filo, which is an interesting idea. I find plastic wrap about as user friendly as Superglue, which is to say, not very. Experiences with the latter invariably end up with finger fastened firmly to eyebrow, while those with the former seem a battle against the plastic's perverted will to self-gratification that will not be denied. And once a corner of a sheet of plastic wrap has stuck to its middle, no pleas, threats, or tears will pull it apart. I use waxed paper or parchment paper, which is much more placid. And yes, still a slightly damp tea towel on top.
Work with one sheet of phyllo at a time, removing it from its plastic or waxy casing and placing it deftly on a large cutting board. At this point it's best if you coat the sheet lightly with some kind of fat. Some brush it with melted butter or olive oil, which inevitably results in some tearing. I recently discovered spray cans of olive oil, which works like a dream for precisely this task. A quick pass over the sheet and it's oily and ready for the next sheet. I can't think of anything I make with filo - triangles, cigars, or purses - that doesn't use at least two stacked sheets. (See here for instructions on making these shapes of filled phyllo.)
The cutting board may help Li Kao with cutting the phyllo, though it's true, as s/he knows in his/her heart of hearts, that nothing makes cutting easy like a good sharp knife. Buy one, a good big chef's knife, along with a good sharpening steel, and all cutting jobs will become much easier.