Wet sanding/polishing clear coats

OK, long time figure modeler, newbie auto modeler.  The hi shine gloss on cars rarely occurs in the stuff I normally do, so I'm bollocks at it.  I've been watching some tutorials and all, and they make a little sense, most are in japanese though.  :/ 

 

That being said, it appears a lot of scale modelers use urethane finishes, then sand down and polish.  I have a spray booth and mask, but even with that, I'm still spraying in my home, so I'm kinda nervous about whipping out poison around my wife and kids.  Can I achieve similar results with other clear coats (for point of reference, I use mainly Tamiya acrylics) on top of decals and do the same procedures (wet sand polish etc) without harming the waterslide decals?  Whats a good coat that I can achieve said results with, without messing with the decals and/or the acrylic base coat?  Thanks for the help!

Source: http://cs.scaleautomag.com/SCACS/forums/thread/963491.aspx

Ludovico Scarfiotti Giorgio Scarlatti Ian Scheckter