I think this is probably one of the more esoteric subjects and what separates the Autopian from the amateur "polisher". In my youth, although I understood there was such a thing as rubbing compound and polishing compound (in the green and white DuPont tins), most of my "correction" was from using various cleaner waxes, which had differing amounts of "bite".
The complexity of your question stems from the range of polishes/compounds, pads, and machines/technique (obviously I'm referring to machine polishing rather than hand). This results in innumerable combinations which perhaps can only be fully appreciated through experience.
Perhaps your best bet it to click the "How To" link at the top of this page and read the section on paint polishing.
