Most swirls are "induced" during washing, so it's very important to use proper washing methods. It looks like you've got the right tools already. You might want to have a dedicated wash mitt for the lower portions of your car, since those are usually dirtier. This will prevent from spreading the dirt collected on the lower panels to the top. It's also a good idea to wash from top to bottom. Additionally, rinse your mitt out after each panel. It's a bit tedious, but don't stick a dirty mitt back into the bucket, rinse out all the dirt you just wiped off the car before putting it back into the bucket. This way, the dirt won't collect in the bucket and be "re-applied" onto the surface again with the next dip in the bucket. When drying, use a small stream of water to rinse off the car, you want as much water to sheet off the surface of the car. Then use a microfiber towel, a lot of people prefer waffle weave microfiber towels because they absorb water much quicker, and blot the water up. You'll want to minimize dragging the towel across the surface as this will sometimes cause swirls. Additionally, don't rub the paint with a whole lot of pressure, use as little pressure as possible.
Typically, the more you wipe the car, the more swirls you'll put into the paint. Just try to avoid any dry touching of the car (ie. dusting with a dry cloth, touching the paint).
It's also not a bad idea to replace your mitts frequently, as they loose their softness and dirt can become embedded into them.
I hope this was helpful. Also check out
autopia.org and
Detail City for some good advice on detailing. Sorry for the poor grammar in this post, I'm in a hurry to type all this out.
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2003 4Runner SR5 V6 4x2 - Pacific Blue Metallic/Taupe Leather