Not saying it is wrong or that it doesn't work Jim, just that I don't do it due to the risk of getting water into the end grain. I also don't see the need to work through all the grades of micromesh before moving on to plastic polish or burnishing cream, to me it is a waste of time and effort, because Farecla for example will take scratches out from 600 grit anyway. But each to his own method. Nothing is wrong if it gets the right result.
John is not getting the right result, moisture seems to me to be the most likely cause and not wet sanding is one way of reducing the risk. Just a suggestion.