Waxedmax:
Soak the wet-sand paper for a good 30 minutes in a bucket of clean water.
Starting with 600 or 1000 grit, sand laterally spraying with water the whole time until you see no more yellow or white water coming off the lens. The plastizers have migrated to the surface of the lens and you are basically sanding off the top layer, this is the milky stuff.
Move to 1500 grit and repeat the step.
Move to 2000 grit and repeat. By now, the surface should look like the water is "sheeting".
If you have 2500 grit, give it a go.
Prep/Clean the lens using Isopropyl alcohol mixed with d-limone 50/50, then cut with water 50/0. Or you can buy pretreatment from here:
http://www.superiorrestoration.com/products/bright_lights_headlight.htm
This will evaporate very quickly, but will give you a good idea if you've removed all the problem.
Next, apply a liberal amount of 2000 grit compound to the surface of the lens with a lint-free paper towel. The above link has a special plastic polish, but either will work fine.
Using a rotary buffer and a wool pad, buff until the product is gone. Be very careful to run below 2000 rpm, and don't let the lens get too hot. I like to mask the lens off to prevent wet-sanding marks in the surrounding paint, and to make buffing easier.
After this step, reapply PreTreatment using a lint free paper towel to remove any waxes or fillers from the lens, and to open up the pores of the plastic.
Now apply, in several light coats, a plastic protectant like Superior's Shine Restorer, Meg's plastic protectant, Plexus, or the like.
Hope that helps! Good luck
Regards,
Mike R
Before you start, they may look like this: