Rainshdw,
Here's what I did, following my interpretation of all of the things I've read about the clay bar.
In a medium sized bowl, I put in about 1/2 cap of Z7 car wash. Then added some water to dilute. I used a sponge to saok up the mixture and apply to car surface. Using the sponge across a section of say 2 square feet at a time, I rubbed the area with the clay bar. I didn't pay much attention to the direction of rubbing as the idea is to remove impurities, not add scratch or buffing lines. Try not to let the solution dry either before you've rubbed a section clean or after. If it happens (it will), just use the sponge to get it wet again. A dry clay bar will not rub on the surface and you'll know it need more solution. Also, you'll know when to stop rubbing a section as the clay bar will actually slide easily over the lubricated paint, no bumps.
Wipe the completed section with one of the towels (or T-shirts) after done with that small area and still wet.
That's about it. A little pratice is all it takes. It took me half a vehicle before I think I understood the whole process.
Aaron
