Exit, buffing with an agressive enough compound can do all the work wet sanding would. If you have only a little very even orange peel, buffing may very well be the way to go. I once had an insurance company have one of my cars fixed, one that I had bc/cc'd sanded and buffed. The first time they tried to give it back to me "fixed", the orange peel looked terrible (compared to a near perfect paint job, probably was on par with a stock paint job). I told them to fix it right and don't call me again until it was really fixed. When I finally picked it up, they had done a nice job with the finish. They told me that they didn't send it back to the paint shop, they just had it buffed out. I wouldn't use the turtle was buffing compound that charger69 had been talking about. There is nothing wrong with that stuff, but it is intended to be the final buff before wax. Like I said, I have had great experience with 3M compounds from NAPA. It's going to put the paint job over the $50 figure though.

There is one thing I want to clear up, because I'm not sure everyone knows the difference. Generally there are 3 types of pastes we use to finish a paint job. 1st is a rubbing compound, 2nd is a polishing compound, and 3rd is a wax. Rubbing and polishing compounds don't contain any wax, their purpose is to remove material from your finish. The work at different rates, based on how agressive thier abrasives are. Rubbing compound is for removing material quickly (scratches, light orange peel), it has harsh abrasives in it. Polishing compound is for bringing a shine to dull paint, it contains mild abrasives. The rubbing compound (harsh) will leave your paint dull, but not scratched. The polishing compound (mild) will take that dull finish and turn it into a shine. If you skip the rubbing compound after you wet sand, you will spend a very long time buffing (very safe, slow method), otherwise (if you stop early) you will end up with a foggy, scratched, and mildly shiny finish. In the later case you would have a better shine if you didn't wet sand, but your finish would have some orange peel.

Wax is entirely different then rubbing and polishing compounds. Wax leaves a shiny protective film on top of your paint. Although I believe charger69 when he says waxing his paint immediately after finishing didn't hurt the paint, I don't believe it is the BEST way to do it. The best way to do it (my opinion) would be to wait the month or so until the paint is completely hard before you sand and buff. I don't think this is the only way to get an excellent finish (obviously by charger69 and Exits buffed red), but I think it may be the way to get the best possible finish.

There are many different 'grits' of rubbing and polishing compounds. If you stay with a line of products, you can be relatively sure you are going with the right progression. One thing to watch our for, if you seem to be getting a poor results with one step of buffing, it is probably because you stopped the prevoius step too early. You can continue with the current grit for a long time to make up for that, or you can go back and finish the previous step.

Got to run, good luck.
Jason