A lot of people have seen this video:
http://www.youtube.com/watch?v=Cy_WF5Iei_I
But I wanted to share my experience with another product by Meguiars. PlastX plastic polish, or rather the One-Step Headlight Restoration kit.

I looked at others, but didn't think the damage to mine warranted attacking it with sandpaper... the only reasonably priced kit here is the Turtle Wax one, but they were out of stock everywhere local.. so I did a quick google and found this kit. It is basically a Buffing pad that goes on your drill and PlastX polish. They give you a cloth to shine it up when you are done too. I picked it up for like $30 delivered from US eBay. You can get the polish here, and probably find a suitable buffing pad, but I wanted to try the kit.
It was amazing, the headlights look brand new! And after a week still look this way, my mate even noticed they were so clear yesterday. Better results than the patch up fixes I have tried before (car polish, toothpaste etc). Never got around to the Avocado, cause it seemed weird















