Wet sanding should only be done if it is heavily oxidized and compound won't do the job. Yes, I have wet sanded mine, but it isn't something you want to do every time. Wet sanding is exactly that, you are removing a layer of gelcoat. If you are going to wetsand, you can try just using 1200 grit wet paper instead of starting with a more aggressive like 600. The more levels of sanding you do, the more gel coat you are removing. . No matter what grit you use keep it wet while using the paper, if you feel it start to stick to the surface wet it again. Make sure you are buying sand paper that is intended for use with water. You can get it at Lowes.If you are compounding, the compound should also be put on while damp. I apply it by hand only for best results. I also remove it by hand so I can feel how smooth the areas are as I go.
I believe in using the same product line, whatever you choose is your choice. This year it was Woody's compound and then triple XXX Woody wax. Last year it all Starbright products, the year before that, it was all 3m products. Some say collinite is the best. I like starbright and woody's products, but thats just me. Here is a couple picks of mine after just compound and wax. 21 year old hull.
When your done with yours, you can come do mine if you haven't had enough!