Microfiber, Microfiber, Microfiber. The only choice IMO. Terry is better than diapers and old t-shirts, but not as good as micro. Micro removes wax/polish from paint easier and has less chance of scratching.
Vroom from target are some great products available local.
Good quality microfiber from Korea is the only choice for me. There are cheaper microfibers made in China that you can buy at retail or big box stores, but there is no subsitute for quality Korean microfibers. They cost more but they are worth every penny. I use the cheaper Chinese towels for door jams and under the hood.
I keep those free AOL trial cd's handy to test my towels. If they scratch the cd they are demoted to door jam duty.
I'm a big fan of quality microfiber, too, but I wish there was a good way to keep 'em stain-free while complying with the directions for cleaning 'em once they've been used. Otherwise, they just keep gettin' demoted to messier tasks as they "age".
What's your view re: the "cheaper" (Chinese, IIRC) microfiber cloths issue of containing non-polyester threads in labels and outer border that can supposedly scratch the finish? Not sure whether the Vroom cloths fit this category, but I believe Target may get a little more for 'em around here than in your neck of the woods.