Yes basically and as Bjorn said, your approach is correct. I used the 1500, 2000, 3m cut, and Menszerna medium and final polishes on my new 2 stage paint. came out very nice. Just be carefull not to sand thru the paint, go easy! There are a few pix of the process on my photo link...

I had some orange peal and sags to contend with...all gone now.

Jan Misc 008, Feb 5 07 009, Feb 27 07 Paint