I am confused.
How does it work?
I wash it than followed it with Step 1 "Paint" for like 5 min.
Than I went to step 2 "polish"with 5 min of wiping it around.
Step 3 I "wax" and did it for 5 min again.

In the end it look like its wet but there's some white residue left over I am thingking its the wax. I kept wiping the white residue for 10 more min, but it just got fainter and fainter but you could see a faint white residue. So I rewashed it over/dried and left it as is. Oh and the 3 step program I just did it on my hood. I dont know what I did wrong, so can one of you guys explain how step by step what should I do and how long should I do it. Any help would be appreciated.

I have been using the 3 step process for the last coupleof years on my 3000gt and i find that it helps if you spring for the meguiar's prioffessional grade system instead of the "emerald" ( i think) version.
the proffesional version is in clear bottles and looks tan --the lower version is in colored red or black bottles- I always use the gold class liquid wax for step 3 and it has been awesome.javascript:smilie(':D')
javascript:smilie(':D')

My guess i that the polish (step 2) or pre cleaner wax( step 1--which you reffered to as paint?) was not adequately dried as mine ussually takes about 15-20 minutes.
The bigest thing to remember for steps 2&3 is that a couple of thin coats are better than 1 thick coat.

the first couple times i used the step 1 cleaner (which is much harder to remove) i didn't get it all off and it definitely diminished the outcome.

I have also had the white baby powder like residue but ithink it was wax buildup on my polishing cloth-- when i switched to a fresh one it wiped right off-- Good luck

I think Iam going to try zaino when I get my 8 in october--seems like the bee's knees from every 1 on this forum