I need some help on Sanding/Polishing/Waxing

Okay, so i got myself a modena 360 and i don't want to screw it up.

After priming and sanding, I mist painted 3 layers of tamiya italian red and weat coated 2 layers.
After 2 days, I did the same with some testors clear coat i had laying around.
Another 2 days pass and i start sanding. I've noticed i've got a bit of orange peel. I sand up to 2000 grit all while wet sanding it..

I just can;t get rid of the hint of orange peel....
I figured some compounder and wax might get it out...

I end up with this.

http://moderator.albertacars.net/jim/modena/01.JPG

upon closer inspection i see this on the hood
http://moderator.albertacars.net/jim/modena/02.jpg
and
http://moderator.albertacars.net/jim/modena/03.JPG

note the peel is still there....
any suggestions?

sand some more? than polish it

It will be hard to get it out, but it is possible, in the future wet sand the primer first to get smoth surfice and then send again beffore clear coat. Now the only thing to do is to sand it untill orange peel is of (so you need some serious sanding) affter that (if you haven't gone through the colour all the way to primer) just give few clear coats to get it shiny and if you go throug the paint you will need to repaint it completly. Try very slowly maybe you will get it out, the problem is once you apply clear coat it is hard to get to paint with rubbing compound only, so sanding is only option, work slowly and you might get it right. By the way it is not as bad as you think, just a bit more sanding, and clear coat of course.

With the two dents you already have I woukd suggest start over again.
Strip the paint and then Prime - sand - Colour - sand - clearcoat - sand -compound polish - wax polish.

More sanding is obvious here, but... Before you start take a close look at your model again. If you think that more sanding might cause rubbing through the clearcoat (or what's even worse through the base colour) consider clearcoating it again. It might be a better solution than removing the whole paintjob and starting again from the scratch. With a bit thicker (and maybe smoother) clearcoat you can sand your model as smooth as it should be without the risk of repeating the whole process.

Oh, and BTW I wouldn't sand down or even polish the base coat before clearcoating it unless it is a solid colour. Sanding metallic or pearlescent finishes can leave ugly marks. The bad news here is: you won't be able to get rid of them with polishing or in any other way because the marks will be 'trapped' under the clearcoat.
I am sure Sjelic speaks from his own experience and uses the kind of paint that allows that kind of procedure.

Good luck

Yes sorry I should have mentioned that I use automotive paints only, here is picture affter polish with automotive polish without clear coat.
http://files.automotiveforums.com/gallery/watermark.php?file=/503/123205P1010013-med.JPG