orange peel is when paint looks like, well, an orange peel. go outside and look at the bottom of your panels (esp. around the wheels or underneath the door). if you look close, you'll notice the paint looks a little rough and feels rough, too. that's orange peel. typically, orange peel is the result of a bad paint job.
A claybar will do wonders for your car. I had a Dark Grey Passat and the Meguiars Clay Bar worked great. I used it so much that it just got too dirty. I have to go get a new one now. I am considering the 3M clay bar, but it is a bit pricey.