Here's what I recommend.
Go out and buy two things. First a good polish or glaze. There's a lot of them on the market, but they are all pretty similar until you get to the more expensive ones. I use a product called Blackfire Gloss Enhancing Polish, which I get very good results with on a variety of paints. Mothers and Meguiar's also make some pretty good mid-range products; can't go wrong with either of those. I've heard rave reviews for Klasse, Pinnacle, Zymol, Zaino and similar high end products but with the exception of Zymol (way over rated, IMO) have no experience with them.
Second, to address the scratches, I would try Meguiar's Scratch X. You can get it at Target or Walmart and it works as advertised. I just hit my wife's car with this product a few months ago and saw some really good results. It pretty much took out any scratch that didn't penetrate into the paint itself (if your fingernail 'catches' on it, it's usually too deep to buff out without pro-work). I haven't tried the product Joey recommended, but I can def. vouch for the Scratch X.
Hit your GTI with the polish/glaze first. It is milder than a compound and will put a nice luster and mirror-like shine on the paint. Take your time with this step, because it is crucial to get it right. When you are done, the paint should look deep, clean and highly reflective. It should NOT look hazy or rough. Then take out the remaining scratches with the Scratch X or the stuff Joey mentioned..
After that, seal it with the wax/sealant. This will protect the paint and 'seal' it against contamination. It's a lot of elbow grease, but you'll think it's all worth it in the end.
A couple things not forget; wash the car beforehand, to remove loose dirt. Use freshly washed towels when taking the polish and scratch remover off the car --all you need is one small particle of dirt to be trapped in a towel and you'll end up putting more scratches in than you take out. 100% cotton or microfiber towels ONLY.
M