I think you are confusing two different type of wheel/grit situations.
There are charged wheels, in which the wheel is coated with a glue and the dry grit is "painted' on. This is done with the motor turned off,and is let set overnight to dry.The wheel when turned on acts like a 'soft' grinding wheel of the grit it was charged with. This type of charge lasts about a couple of hours of use.( more or less, depending on if you press too hard)
The type of "buffing" done by most makers is with compounds such as you have (Tripoli, green chrome, no-scratch pink, white rouge, etc.). You turn on the buffer and press the bar of compound to the wheel for a few seconds. Often the wheel shows no real change in color. The compound, however, is rubbed off on the tips of the fibers in the wheel, and a blade buffed on the wheel will be smoothed and polished. This type of compound is added by frequently re-applying the compound every 5-10 minutes of buffing (sometimes more often with coarser grits). The wheel will turn black when the blade is pressed against it, showing the wheel is charged. Once broken in ,the wheel charges easily. A brand new wheel seems like it isn't charging, but a few minutes of buffing and it will be broken in. Putting kerosene or mineral oil on a wheel is an old blacksmiths trick from the days when buffing was tougher and the compound bars were rock hard. It is unnecessary and undesirable today.
Buffing on a 3600 RPM wheel is quite dangerous, even with a 1/3HP motor. Most knife buffers are half that speed and throw 10-12" wheels. A 6-8" buffer like your can work, but has limitations and safety issues.
Now, as to buffing blades. A BUFFER WON'T REPLACE PROPER BLADE FINISHING.
You will have to sand the blade smooth and remove all scratches first (The glue-grit type of wheel is used to do this sanding, but few use that method).Hand sanding to at least 400 grit (800-2000 is better) is the simplest way in the beginning. Once the blade is smooth and scratch free you can increase the polish by buffing on increasingly finer grit compound. Black is a coarse emery, Grey is medium, white is fine, green and pink are high polish.
Stacy