Definitely a valid approach, especially if you're at your wits' end.
I used an SD diagram myself, actually both of the most recent times I rewired a guitar. But I *also* used star grounding. I honestly don't fully understand how switches and pots work in terms of which lug does what, so you'll see in my guitars that the lugs themselves are always connected up identically to my source diagram (SD in this case). The modification I make is:
1. Any wires that go to ground (indicated in the diagrams as either "ground" or "solder" on the back of a pot, which is also ground) go to the star and ONLY the star (pots' shells that are connected to each other for ground get removed, vol lug gets desoldered from back of pot), instead.
2. ONE wire goes from the back of a pot (which is electrically continuous with the shielding material) to the star.
3. The jack ground wire goes to the star
That's about it. Except for those things, I still followed the SD diagram. Note that I did not do the "big capacitor" mod. I'm not sure if that factors into anything, but it's worth mentioning.
Greg