The swirl marks are caused by tiny bits of dust in the cloth - I always use a microfibre cloth.
Rinse off before you start washing - no rubbing. Soft sponge - dabbing action to lift the dirt. Most damage occurs rubbing the dirt around when washing! Next phase a good scrub with car shampoo or use that clay stuff to lift off the film of dirt. By the time you come to polish it there is very little damage left to do to the paint. Meguiars do a synthetic polish that helps mask the scratches - not perfect but it seems better than most polishes.
Zymol make the most expensive polishes I have ever seen:-
http://www.torquecars.co.uk/styling/...aning-tips.php