I also have a car with factory orange peel... 2000 Passat. I've never tried to remove it personally, it is a big chore and you'll obviously have your hands full as you can tell. The only times I've ever tried to remove the orange peel, is on the paint that I've sprayed.
First, I don't think you need to wet sand, for several reasons. The first being it's probably not bad enough to warrant this procedure, since it already had much of the orange peel effect removed from the factory. Secondly, it's potentially dangerous, more so than almost any entire paintning or detailing process that I know of... just about anything is less volatile even a heavy hand and 3M Heavy Cut. And the potential for heavy scratches, as you now know, is just too dangerous, and you'll be overworking your clear coat in the process to the point of possibly damaging it if you remove too much.
Here's my view for your particular need. (ALSO, I have tried this method with very good results removing most orange peel).
1. Clean the area with 50/50 alcohol and water. It's best if you work about 2 by 2 foot areas at a time throughout all steps. Also keep in mind that you have some quick detailer or water on hand to clean inbetween products/steps. Make sure you have one rag PER PRODUCT when cleaning and before starting onto next product/step. Also, you'll need a random orbit polisher/buffer for this procedure.
2. Use 3M 3Mâ„¢ Perfect-Itâ„¢ II Paste Rubbing Compound, make sure it is the PASTE, not the liquid. The paste is a more veratile product.
http://www21.3m.com/dr/v2/ec_MAIN.E...PN=1&V1=267753&DSP=&CUR=840&PGRP=0&CACHE_ID=0
Start by putting down about the size of a dime or quarter for the 2X2 foot area, use a wool pad for your randon orbit polisher and get the wool pad a LITTLE damp. Always start this procedure with a slightly dampened wool pad, it will eventually dry up as you work in the compound, but that's OK continue to work it in. It's when it turns dry that it creates a lot of friction and REALLY starts to polish, at which point your using less pressure. _Work back and forth in straight lines, not around & around. Moderate to a little pressure for first few passes, lighter for second pass, use the edge of the wool pad at an angle for another pass. Now go about half the weight you started out using (your're actually holding up the polisher a little at this point). Finnally, one last very light pass. Remember these steps in polishing... they'll be used for the next step using 3M Swirl Mark Remover. Now remove the rubbing compound using your rag designated only for that product.
3. Use 3Mâ„¢ Perfect-Itâ„¢ Glaze Swirlmark Remover. There are two kinds... one is for dark cars, the other for light. Attach a FOAM polishing pad to your polisher. Do NOT add water to your pad during this step. Work in the product just as stated above about a dime/quarter's worth... then start moderatel heavy, getting lighter, lighter, and very light. Going in a straight/linear motion.. back & forth. Wipe up the excess, even if you don't see anything, with the rag designated for this product.
http://www21.3m.com/dr/v2/ec_MAIN.E...PN=1&V1=267747&DSP=&CUR=840&PGRP=0&CACHE_ID=0
4. Use 3Mâ„¢ Imperialâ„¢ Hand Glaze. This step REQUIRES THAT YOU USE IT BY HAND! Just like the label states. Put it on like you would wax, let it dry and then rub it of with the rag designated for this product. Wipe it off going in a straight/linear motion.. back & forth.
http://www21.3m.com/dr/v2/ec_MAIN.E...PN=1&V1=267736&DSP=&CUR=840&PGRP=0&CACHE_ID=0
5. Wax it... your choice of brand or type. Use your orbital. and use cotton terry pad.
You can, of course, substitute with like products... such as Meguires... but the product should be as close as possible to what I have shown you. Personally, I'd say just buy the 3M products... up to you.
Good luck!
:xyxthumbs
Colin