If you choose to work by hand, you've no chance or removing the defects properly, so often the best bet is to use a glaze like Menzerna Finishing Touch Glaze or Blackfire Gloss Enhancing Polish to fill and hide the defects, and then seal the finish with a decent wax or sealant (to boost the gloss and lock in the fillers). However, if you are happy to consider a machine, then you will be able to make some headway in terms of correction...
Most modern germanic paints are rock hard, and thus damn hard to polish! So, whilst it is relatively easy to swirl them up, it is very difficult to subsequently correct them. They comprise the standard 3 layer system used by most car manufacturers (primer, pigment, lacquer), but the lacquer tends to be extremely hard, yet also elastic (to better resist stone chipping). To correct defects in such clearcoats requires polishes with ultra-fine, ultra-sharp particles that resist premature breakdown. The latest generation of polishes from Menzerna hits both of these nails squarely on the head (these polishes are in fact used on German car production lines), and Lake Country's CCS Technology pads have been designed to work perfectly with these products. Here is the method I would follow using a dual action machine...
To correct swirls and other moderate defects (fine scratches and etching) on your car, you will need to start out with Menzerna RD3.02 using Lake Country CCS Light Cut Pads (6.5" pads on a 6" flexible backing plate for larger areas, and 4" spot pads on a 3.5" flexible backing plate for more awkward areas). Working at speed 4-5 using moderate pressure should see you able to correct ~90% of the defects with a couple of attempts per panel - to achieve a higher level of correction would require the power of a rotary polisher, which are professional tools that need a lot more time to master. With the bulk of the correction done, you will need to switch to Menzerna 85RD using Lake Country CCS Polishing Pads (again, it's best to have both sizes of pad to work with). Working at speed 4-5 with light pressure should see you produce the maximum possible gloss, which you will then want to seal in using either a wax or a sealant.
One thing you may wish to consider; the ever popular Porter Cable 7424 dual action polisher has recently been superseded by the Ultimate Detailing Machine (UDM), more info on which can be viewed here -
http://www.autopia-carcare.com/udm-1000-na.html. The UDM is a clone of the PC, but with noticeable improvements. It is currently available in the US as a 110V model, but is set to be released in the UK early next year as a 240V CE certified model (we will be stocking it, and offering it along with pads and polishes in bundles). We have tested a prototype of the UDM, and it is way better than the PC in terms of corrective power, and much more suited to harder Germanic paints; my advice is to either buy a 110V US version now and use it as you would a Porter Cable (i.e. with a 110V site transformer after changing the plug), or hang on until next spring and get the UK UDM when it comes out.
Of course, the other option is to have your car detailed professionally by someone else in order to correct the paint; if you want to go down this route expect to pay at least £300+ for a full correction detail done over two days. Once done, all you would need to do is arm yourself with a good wash kit and top up product to keep the car looking good well into the future. Finally, in terms of deciding on products to use to get the finish you want, I recommend taking a look at this link for ideas...
http://www.audi-sport.net/vb/showthread.php?t=41386
Hope that helps!
