joeyb7- I have't done a *black* Subie, but I've done other colors and I don't think the clear should be all that different. Once you get the marring out (yeah, you're gonna need a PC unless you have the patience of a chopping block) you oughta rework your wash technique. Check out my Non-marring Wash Technique thread in the Hall of Fame forum.
To correct the marring, I'd use PI-III RC followed by PI-III MG. While discontinued, these products are still commonly available (or you could use their PI-3000 replacements). I"ve uded them on Subaru clear- they worked. I used the
Klasse twins on mine after these polishes. VM is *much* too gentle for this job. Subie clear is sorta tough, so it'll take a while evn with the right products. I'd *definitely* get the PC, doing this by hand is possible (I did small isolated areas by hand) but it'd take many, many hours of hard work.
Another idea would be to use
Meg's #80 for the final polishing, and seal in its oils with a "heavy" carnauba, which will hide a little more too.
Direction-of-motion shouldn't matter. Scratches are scratches, they're a mechanical phenomenon caused by pressing something abrasive against/into the paint and can happen in any direction.
I'd ditch the terry and use only the hightest grade fom and plush MFs for your polishing and waxing. My guess is that it's the washing that's causing most of the problem. Yeah, you should get a fresh MF whenever the one you're using gets loaded with product. I used a *lot* of MFs when I did my WRX.
Pull it into the sun as you're doing the work, so you spot problems early and don't get the whole car done before you realize that something isn't satisfactory.