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3M makes an awsome kit that attaches to your drill. It uses several sanding pads, and a compound to make them look like brand new. I just did my wife's car and they look like new.
^ I've heard that stuff (Blue Magic) is little more than WD-40. Is that true?
Bump on this question.
I did a DIY on for when I did my headlights a few months back. Gives a good idea for how much you need to wet sand them. Took photos at every grit stage to show the transition.
Seal them with wax or a sealant and they'll be good for around a year.
Unfortunately when you sand them you remove the UV coating and they're prone to fogging up more easily. So it's really a maintenance thing you have to keep doing to keep them looking nice.
A solution to this issue is to have a uv-resistant clear-bra applied to the headlights. It will protect the finish you worked so hard to obtain, and if it gets damaged you can simply have it removed and a new piece applied.
