ok/safe to use white vinegar full strength or should it be diluted for water spots?

full strenght is fine - leave it for 30 secconds to a minute (on a cool car) - it will also remove any wax or selant you have in the area so plan on redoing your car.
 
A cup or two in your wash water (about a gallon or two) will suffice to dissolve most waterspots as you wash! Your soap will be more effective too if you have hard water! If you have spots after rinsing, spot dissolve with 50/50 vinegar and water. Make sure you dry after rinsing to avoid water spots or else you just wasted your time!
 
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