It is hard to beat the gloss of freshly applied varnish, however you can get good results with rubbing out. Let the varnish dry as long as possible to get good and hard. Using the finest paper that works wrap a hard wood block and level the surface. If the grit you are using does not make progress, step to the next coarser. Once every thing is level, work back up through finer and fine grit, using a softer block. Then get out the polishing compound and start buffing. A random orbital sander with a buffing bonnet will work well. It is theoretically possible to make a flawless surface.

However, if you are then going to toss the boat on the roof of your car and go for a paddle, the surface won't stay flawless for long and it will bug you to no end after all that work. So you won't want to throw the boat on the roof of your car and actually use it, so you have this funny shaped piece of wood sitting in your garage with a really shiny finish, when you could have a really nice looking boat out on the water.

I advise paddling the boat as it is. Next year you can sand it down to remove the blemishes and try varnishing again.

: I just finished spraying the third and hopefully final coat of varnish. It's
: not perfect, but neither is the boat. How can I get the best possible
: gloss and shine from this finish? Should I leave the varnish alone and
: enjoy the boat or should I sand with 1500 and polish the varnish with a
: wax? Any suggestions would be appreciated.