In decal parlance it's called 'silvering', and it's extremely common. The best solution is to do what you then did - cut as much as possible of the backing sheet away. You could also try some purpose-designed products called Microsol and Microset, which are supposed to aid in settling the decal and reducing silvering. I have had little success with them, but then I haven't tried that hard either.
Hell to the yeah! Common sense, init? Buffing generates heat, which CA doesn't like much. The thicker the CA he better it will stand up to the buffing. I personally use about 12 to 15 coats of CA, then I buff lightly with T-cut.
Thanks for the progress report, looking forward to future results.
