Oooh. Now you're talking my language. Your steps are generally correct, depending on the type of rubbing compound you're using. Most detailers who are worth anything prefer to use a pure polish to finish out the compound between steps 3 and 4. A pure polish is designed to remove micro-marring left behind by most polishing compounds, and to give the paint a deeper, wetter look before sealing it in with wax. However, I have recently discovered a product from the Meguiars professional line called M105 that does not appear to require a polishing step. I went to a detailing class, and after watching it in action with a Porter Cable DA, I was blown away by how well it finishes out. The instructor even said, "Meguiars officially recommends using a pure polish after applying M105, but I personally skip the polish and go right to wax." You can only get M105 from an auto paint body and equipment store, or directly from their website. If you want to get really anal about detailing, check out
www.meguiarsonline.com and browse their How To and Hot Topics section. You could spend a lifetime perfecting your technique, and apply it to the product line that you prefer (not necessarily Meg's). I recently started using the 2-bucket method (use a dedicated rinse bucket for the wash mitts) and got a grit guard to catch sediment that could instill swirl marks.
As for the wheels, I use the old car wash soap bucket to clean them. I use a dedicated set of mitts for the wheels of course. I have painted wheels with fat spokes, so they are much easier to maintain than polished wheels, if that's what you're working with.