^ you need a lubricant of some sort for clay to be effective (otherwise you're effectively rubbing dry clay onto paint). The liquid clay bar is a type of all-in-one method where the "clay" is already in the solution (shake to activate) and you're just using a foam pad to apply.
Here's the thread in detailing with a referring link about clay:
http://www.xoutpost.com/detailing-for...t-exhaust.html