Here is a cut and past from another Dodge forum I go on....
WETSANDING:
Supplies:
Wet/dry sand paper 400, 600, 800, 1000, 1500, & 2000. If you can't find them all that’s okay. You can find them at any auto parts store. Get 1 or 2 sheets of each.
3M Rubbing Compound, it can be found at Kragen or any auto parts store in the auto paint section, by the sand paper. If not ask.
Instructions:
Start with the lowest grade sand paper (400, 600, 800....2000). Wet the sand paper before each use in a bucket of warm soapy water. Then start sanding headlight for about 3 to 4 mins. with each grid of sandpaper. Make sure the sand paper stays wet. Keep doing it until smooth...be patient. After done dry and your lights will be a little hazy/ cloudy..don't freak out. This is were the 3M rubbing compound comes in place. Follow the directions on the back of the bottle. Then it will look like new. Works great I highly recommend.
You may then want to try a product called LampGaurd to protect your lenses from getting scratched up again.
http://www.weathertech.com/store/vehsearch.asp?make_id=14&year_no=1995&veh_id=174&item_group_id=2&veh_opt_choice_id=0
This is a known problem with our cars.