It's nice to hear the result! That's interesting that it still looks more-or-less like that. Either you captured the metallic qualities of your paint very well, or your paint has been sandblasted. Well, that's what it looks like to me.

I'm glad I don't live in an area with sandstorms, but I do hate it when they are removing the painted lines from the road by sandblasting and the only way around is to drive by...you'd think they'd at least put up a shield or something!
Anyway, I think you're right that a good polishing would do the job, but you might have to start out pretty agressivly to get down past all the pits, then work your way down to less agressive polishes to bring the gloss back up.
I'm gonna try claying first, and if that doesn't seem to work I might invest in a PC myself or strongly incourage the father to. . . heh heh.
I think you're at the point where a PC is the minimum of what you need to get the job done. It wouldn't hurt to try correcting it by hand, though. I don't have enough experience to tell, but correction like this might be better suit for a more agressive circular polisher like this $25 [sale, regularly $50] one at harbor freight...
http://www.harborfreight.com/cpi/ctaf/Displayitem.taf?itemnumber=46507
Going this route, you'd probably want to get some different pads and a velcro backing plate for easy attachment/detachment of the pads. Top Of The Line seems to be one prefered place that sells stuff like you need. You might want to go with 6" stuff because it is reportedly easier to handle as well as will fit the Porter Cable 7427 polisher. TOL doesn't seem to have a 6" velcro backing plate on their site, but I'm going to call monday.
That is assuming that some pitting thing is going on. I remember Ron Ketcham and his magnifying glass...you might want to try looking at the paint through one.
Here are a few links on the polisher that might be of interest to you...
where you can buy the polisher:
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http://www.harborfreight.com/cpi/ctaf/Displayitem.taf?itemnumber=46507
read a review of what appears to be exactly the same, just different color:
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http://www.properautocare.com/veprcipo.html
someone's independent review of the polisher:
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http://www.autopia.org/forums/showthread.php?s=&threadid=31013
my thread proposing buying the polisher and backing plate
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http://www.autopia.org/forums/showthread.php?s=&threadid=30978
post in "good deals" section of autopia about the polisher
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http://www.autopia.org/forums/showthread.php?s=&threadid=30305
That's saying you're on a budget....just giving options.

good luck,
Kevin