I use a gray finish pad, but colors might vary depending on who makes the pads. If I use a 4" pad it will fit in the tin of #16, but for a larger pad I use something like a 1" plastic putty knife to scrape just a little bit onto the pad and spread it around. The PC really allows you to lay down a thin application, and a little really does go a long way. If you're not sure if you need to reapply more to your pad just do a spot on something like your side glass and you'll see if there is still wax on the pad.
I apply it to the whole car and by the time I'm finished with the last panel it has hazed where I first started and I just start buffing it off with a MF. I've never had a problem applying or removing it this way, and I actually find #16 a pleasure to work with. I just applied a coat of Collinite 476 to my mini-van this afternoon the same way and it too was very easy to buff off. Sometimes when I'm finshed buffing it off by hand I'll go over it with a MF bonnet on the PC just to make sure I didn't miss any spots.