Disco Stu-
What kind of buffing wheel are you using? I wouldn't recommend a Dremel for polishing a blade (although they do have a thousand other uses in a knifemaking shop).
I typically would say that Scratchless Pink compound from K&G on a loose buff would do just the trick. If that still didn't remove the scratches then you could go back over it with Green-chrome compound on a hard-sewn buff.
But it depends on your buffer, the depth of the scratches, and the type of wheel, etc.
If you really want to do it by hand, then just start working up through your sand-paper.
I like to use Cool Tool II with my paper when I hand sand. If you rub the blade out to 2500 grit it will shine.
One last option is Flitz metal polish/fiber-glass cleaner. I have used it with pretty consistent success.
Best of luck to you,
Nick