Ooo... I would avoid using sand paper at all cost, especially on a high lister finish like a polished wheel. There is a kit I bought when I did my wheels and it did an awesome job. Here's ALL the info from it:
Micro "Wheel/Spot Detailing Pad Starter Kit"
for buffing & polishing small, hard to reach areas
Kit #85-938
Contains one each of the following:
57-135 tuffer buffer
59-335 spin brite
44-603 yellow speedy foam pad
44-643 black speedy foam pad (this one worked THE best and didn't scratch)
69-083 Micro hook backing plate
69-102 DA Pnuematic Adapter
made by: S.M. Arnold, INC
7901 Michigan Avenuw
St. Louis, MO 63111-3594
I bought it at a local paint/body store. You attach the micro hook backing plate to a drill and then stick the pad of your choice on the end. They are nice and small (only 3.5" dia) and they are tapered to fit in all sorts of small places. It took me 4-5 hours to do one wheel by hand, I did 5 others in 2 hours with this kit. It was only like $20 too. I HIGHLY suggest starting with regualr (red can) mothers alum polish and finish with mothers billet alum polish... this stuff is simply amazing in the shine it produces, the red can stuff doesn't hold a candle to it!