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I haven't used it, but I would be a little cautious using anything labeled as a compound, since they tend to be very aggressive. It's easy to go right through your clear coat with a heavy compound. Try the least abrasive type polish first. Some water spots are not going to come out or aren't worth removing because of the amount of clear you'll take down.
I've used it on my black DD. It worked very well eliminating swirl marks and minor surface blemishes. They claim it's clear coat safe which is the reason I bought it.
It's not that aggressive. I used it recently on my '03 Grand Prix and it came out looking beautiful. Followed that with a polish and a wax and she looks great!
If you're worried, try it on the door jam or top area under the hatch first.