From my reading on here, many use more clear coat to begin with on a show car. Therfore you can safely level without running into your base coat. Most guys state they start with 800 on a block and work their way up. The 800 on a hard block cuts the peel out fast and the thinner grit prepares it for polishing. I was also reading you want to go finer than 1500 so that you are not taking as much off with the polish. I never did understand how the polish took off more than the sand paper. But you would probably go all they way to 2500-3000 if you wanted it like a mirror.
A daily driver with 2 coats of clear, I buffed mine at 1500 and did not bother going finer. You cannot see the sand scratches unless you really study the paint in direct sunlight.
Thanks to those who answer my many questions. Still new at this, and eager to learn.