I just posted up some taillights for sale. Here's the process I used, and here's a shameless plug for my FS ad
With Pictures.
The taillights started with some scratches, bad oxidation and a bunch of overspray. I didn't get a picture of the initial condition before I cleaned the paint off, but suffice to say it looked a good deal worse.
This requires a bit of effort, but I'm very pleased with the results:
Have a roll of blue shop towels or rags available.
Cleaning:
1) Water and paper towels to get dust and grime off.
2) Acetone to remove grime and soften up the paint splatters. Use an old credit card or fingernail to loosen the paint spots
3) Isopropyl alcohol to clean off the acetone residue and prevent the acetone from attacking the plastic too much.
4) Some type of Mineral Spirits or Orange cleaner (I had some "Paintbrush cleaner" handy) to wipe it down with.
5) Water and paper towels again
If you've got chrome trim, you might want to mask it off - the black vinyl trim I simply sanded and polished along with the rest of the plastic
Sanding:
6) To shave the lettering down or any big scratches, wetsand with 400 grit sandpaper
7) Once its to your liking, wetsand the whole surface, including the black plastic with 1000 grit or finer sandpaper
8) Water and paper towels again to get rid of the sandpaper grit.
Polishing:
I used this kit:
Eastwood Co. and Meguiar's PlastX. Any metal polish and plastic cleaner/wax will probably work.
9) Apply the Autosol metal polish in a thin layer all over. Polish off by hand with a paper towel and elbow grease.
10) Apply another thin layer of polish and buff it off with the buffing wheel using a grinder or drill. You can do it all by hand, but it doesn't come out quite as smooth.
11) Repeat as necessary until you're satisfied (I did 3-4 passes with the buffer)
12) Polish the remaining residue off with a clean polishing cloth. I used a toothbrush to get the excess polishing compound out of the cracks.
13) Apply a layer of Meguiar's PlastX
14) Polish the PlastX with a second polishing cloth.
Voila! You have just spent several days to make something really shiny! You could probably finish in a weekend, or maybe a single day if you know what you're doing (as opposed to just figuring it out as you go along like I was)