Honestly, I used 1000 then 1500 grit method and it was a lot of work to finish the headlights I was restoring lately. After polishing with PlastX they were still not to my satisfaction.
Then another day I decided to take off the lights as they were getting moisture inside to open them up and reseal them. When I had the lights dismantled, I took out a 600 grit, wet sanded them very well again and followed straight with PlastX, then Poorboy's SSR1.
Lights came out very well and don't see any micro scratches. This was on a 1997 Acura CL with 200,000 km on it - perhaps if you're dealing with a newer car you can go less aggressive.
P.S. I also believe that polishing them earlier loosened up the seal around the lens so that moisture started to get inside, so be careful with vibrations.