Thanks for all the input everybody :xyxthumbs
I am using the Sonus Orange DAS pad. I ended up applying SFX-1 a total of four times! The last two times I cranked the speed up to 5.5 on the PC and moved it very slow: 1in/s.
The etch marks are now reduced down, some have been completely removed, but the remnants of some of them are still noticable. I think I'll move on to SFX-2 because I don't want to thin the clear too much. Hopefully, the remaining steps can sufficiently hide the edges of the leftover etch marks... I was planning on 3 layers of SG and then P100 as the final coat.
A little background on the car: In early 2005, it was the only one left in the country with the colors and options I wanted. My local dealer, in Milwaukee, located it at a Lexus dealer in Florida which had it sitting on their lot for 6 months. Now I see what 6 months of Florida rain an sun can do to a cars finish without proper protection. I made sure I included detailed information on the unacceptable paint condition of my "new" car when I filled out the Lexus satisfaction survey.