R/B, dont go over the edge over this, ok? We are here to help.
If the bodywork is sub-standard in that panel (and it appears that is is), I would try to make sure you have an idea how much paint is on there- ask the owner, see if the bodyshop painter can remember, anything to help you out with the next step.
Now I know this is going to sound silly to some, but when I painted, I always wet, block sanded the panel in primer with a guidecoat before painting, and depending on the paint and the rest of the vehicle's panels around this work, I might also wetsand with a block and guidecoat the final painted finish, and then compound it out to bring back the gloss.
This step allowed me to see what I was cutting (the guidecoat), make sure I was keeping the sanding straight, and always ended up looking perfect.
This will certainly help clean up but may also be dangerous if the bodywork was not done as described above, when it want to the painter, and the high spots may get sanded down faster and you may lose too much paint material.
Its a tough place to be, but if anything, it should help get those big scratches/marring/whatever appears to be in the paintwork itself out, and then the panel will polish down to your needs.
As you have already stated, use the highest grit paper, to minimize the amount of material removed quickly, dry the area, and inspect it frequently, and if it all works out, the highest grit will then allow you to NOT have to compound as heavily since hopefully, all the defects that appear to be IN the paintwork will be taken out.
Wish I was in Texas, would be happy to come by and help! Anyone else out there that wants to take a drive out to see this?
Good luck, keep the faith, know that a piece of metal with material on it can never be better than you !!!
Best, Dan F