i got some abrasive pads (3M brand) at pep boys that attach to a drill. the coarse one strips off the old clear coat and removes the nicks/scratches; then the finer one cleans it up a bit further; then it's time for a polyurethane clear coat (available at auto parts stores in a spray can).
i don't know that this is the "best" way, but i learned it from my neighbor who has two "garage queen" muscle cars.
i haven't gotten to the clear coat part, so i'm considering taking it a step further and using my dremel to buff them out more, as the finer 3M pad still leaves little circular scratches.
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phil