NO NO NO!!!! Microfiber Towels!!! And the highest quality (softest) you can find. Even cheap microfiber is better than the other options.

Oh, and we wish perfection on you grasshopper.

On the wax, you can get good results with almost any wax. Until you have clayed and polished the defects out of the paint, it's hard to tell a HUGE difference (even though they exist) in the different waxes. Once the paint is properly polished, then you can appreciate the differences in shine, durability and ease of application and removal. I would follow Mike-In-Orange's recommendation and use Meguiar's ColorX for your situation.

Remember, Microfiber. The Claybar kit of your choice. Meguiar's ColorX.

Good luck

Les