I used the following process on my wife's 2003 Jetta.
They look new.
From Auto Geek Forum:
"My process is basically already well known:
Wetsand-400, 800, 1000, 1500 and 2000
Buff-System one polish or equivalent with a high speed drill with small wool pad attachment
But here is the "new" part......
UV Sealer-Helmsman Spar Urethane(Indoor/Outdoor)Clear Gloss mixed with Mineral Spirits(1part urethane to 1 part mineral spirits).
After you buff the lights out with your polisher, you wipe down the headlight with denatured alcohol or isopropyl alcohol (to eliminate any compound residue).
Mix the urethane and mineral spirits in a plastic disposable cup. Remember the dilution ration- 1 part to 1 part.
Then, take a blue 'scott' shop rag and fold it up into a 1 inch x 1 inch square. Then dip the rag into the mixture and wipe it on the headlight. Don’t use too much or it might run, but start at the top of the light and work side to side. It took me a few times to get my method down, so if you mess up with application, wipe it off with mineral spirits and start over.
This UV sealant dries in 10-20 mins usually and is far superior to any average detail product(paint sealant, wax etc.......)
Its like a clear cote, but you don’t spray it, not as messy.
Longevity-The original "creator" of this method told me that he did a headlight restoration with this method about 2 years ago for a customer, and he said it still looks good."