I'd definately go back to a lower grade of sandpaper and sand that until it went away. As for the issue of people getting hazyness and stuff when buffing, has anybody tried painting a panel or something, then spraying it with clearcoat? I've seen that clear coat is sold in spray cans, mask and do the whole car with it, then wetsand and buff the clearcoat? Should help protect the paint seeing as the clear coat should harden better than the paint???