Hi, Dave -
Looks like you got the surface hot and when you hit it with water it blushed. No big deal. Just buff it out.
However, I must say that I'm not a big fan of polish/wax combinations... they never seem to do a very good job, and your results look about as good as you can ever get with that stuff. It always ends up kinda hazy and blurred, not a really crisp and clear gloss.
My advice is to try and get some polishing compound made for use with a power buffer (see my other posts for brands, etc.) and use that first, then follow up with a buffed on glaze (using a *different* polishing bonnet) and then hand-wax it with a good quality product. You'll be really pleased with the results - even more so than you are with your present job.
One other thought... for a finish as dull and lifeless as you started with, I probably would have wet-sanded it first to get off the bulk of the oxidation.. use an 800 or 1000 grit with lots of water (with a few drops of liquid soap in it). This will give you a nice smooth base and prevent loading up of your bonnet from all that oxidized material.
In fact, that's probably why the sides didn't turn out as well as the top - your bonnet was loaded with 'gunk' from doing the top and it just didn't buff as well anymore - this is called 'loading up'. Loading up can be prevented somewhat by cleaning the bonnet every few minutes as you buff. You can either buy one of those fancy bonnet cleaning tools with the little wheels on the end (called a 'spur' - see
here), or just do as I do and use an old bladed screwdriver that you don't mind ruining (the tip will get really worn out!). Run the buffer at speed and take the tip of the screwdriver and slowly run it through the bonnet from the center to the edge, pulling the 'fluff' back into the bonnet's fabric. You could also apply a bit of water to the bonnet and do it again if it's really filthy, but remember you're working with an electric tool and be really judicious.
Finally, always use eye protection and a dust mask when buffing... you won't believe the amount of crap that will get into your nose, eyes and lungs doing that job!