Well, addressing the pad issue, generally speaking I find the orange pads to be phenomenal, in terms of better cutting than a "white" pad while still not leaving marring. I would have no hesitation using that for what you are doing. As far as the polish,
this is in the same vein as the #66, not sure if it is as "waxy", but I have had excellent results using a similar product with an orange pad even on black cars.
EDIT: It seems that #66 is only a 4 on the cut scale...if you use that Laser Buff I linked with an orange pad, IMO you will be able to acheive much better defect removal than you are getting now. Run the PC on 5-6 and make sure you have a good backing plate.