I did it with my old 5.0L LX. Lights were really yellow. Started with 360 if you can believe that and worked my way though about 5-different grades all the way up to 2000-wet. I then went over it with a super fine polishing compound and finally work it over with a nice heavy coat of carnauba paste wax. Mine turned out really well.
The secret to pulling it off without going crazy is to grind off the little “nubs” on the lights molded to the lens in order to align them at the factory. They really serve no purpose otherwise, other than to tear up your sand paper.
Another thing to make note of, depending how "yellow" and oxidized your lights are, you might not need to start with such an abrasive grit. If they're just turning yellow and not really pitted from road debris, or severely sun damaged, feel free to start with 500 or so. Something else that really clears off the yellow is a rag full of paint thinner after the initial rough sanding. Just keep in mind you'll definitely have to go over them with sand paper in different stages to polish them after that, since it turns them cloudy almost instantly.
And don’t have the rag on there too long, it actually will start breaking down the plastic. Just enough to get the initial junk off the lens, then wash it off in cold water and start with the sanding.
I wet sanded my 98 with 2000 and then used system one polish with a wool pad on a drill and when done it looked like new. I did the same on my 95 F-150 too, love the results and saved lots of money too.