[KensRedZed]

Hi Bob,

Nice looking car! 

Almost any polishing compound has very fine grit. I would avoid compounding the decals.

Any liquid may soften the decal including wax.

I barely touch the wax with a one finger over a piece of soft T-shirt material and choose exactly where the wax goes. These are small cars. Only the large exposed areas need to sparkle.

Concerning wax. The best wax on the market in my opinion is "Mothers". Modeller's wax is just a smaller bottle for the same price as a large one for real cars. I'm sure Tamiya product is excellent too.