Orange peel prob

I'm doing a 3000GT for my sisters boyfriend and I'm having a slight orange peel problem. I'm spraying about a foot and some amount of inches away, but I still get a slight orange peel. I havent applied clearcoat and it isn't fully dry. Could it be my primer? I'm using Krylon. Not enough sanding? Need some major help. . .

You're getting orange peel because you're spraying from too far away, the paint solvent is evaporating in the air before the paint lands on the model so the paint is thickening and not evening out.

Try spraying from about 8" away from the model.
First let the paint dry though and wetsand the orange peel away. Then completely wash the model before spraying again.

What grit sandpaper? Should I use soap when washing?

The grit is mostly going to depend on how bad the orange peel is. Try wetsanding with 2000 and see if that works. If it doesn't work than switch do a rougher grit and then work your way up to finer grit.

a few tips about Krylon from somebody that uses allot of it. First of all Freakray is right about 8 inches is a good distance. Krylon is a little more work but you can great results without any clear coat.
Here is my sequence.
Primer- spray very light at first(by not depressing the spray head all the way down)and build it up slowly, because heavy can craze the plastic. let dry a day and wet sand with 1000-2000 grit paper. Rinse well after sanding.
Put on a couple of color coats let dry another day. sand that down with 2000-3200 sand paper. This coat seals the primer for the final coats, because the primer is very porous and absorbs allot of the paint causing orange peel. Next put a cople of final wet coats. Let dry a week and polish. The last coats will go on allot smother than than those first couple of coats. A few more tips have plenty of light so you can see how the paint lays. Hit all areas of car at 90° to the surface you are spraying by turning the body as necessary, if you don,t you get dryer overspray instead of wet paint.

Do I have to polish it? I was planning on using clear coat. Do you guys think I should switch primer?

A clear coat needs to be polished too. Krylon looks great without a clear coat, just polish it and it gets a nice deep gloss.

Aww dammit. Getting rubbing compound and modeling wax isn't very easy where I live.