how do i clear out lights
 

as the title states.....do i just sand it off?

you can sand it or put a little paint thinner. Be careful with thinner though, if you leave it too long, it might eat away at the plastic.

just scratch the paint off:D quicker, easyer and more accurate :)

does nail polish remover work?

I used a Swiss Army Knife and scraped it off. It looks fine, it's not glassy, but it's not crappy looking either.

I just used paint thinner and a Q tip worked fine

i used nail polish remover it works great

i looked into mauling my Mach 5 body=scraping off the painted-on yellow headlights on the outside of the body. good thing i didnt - upon closer inspection i saw that the color of the actual plastic is smoky-opaque, not clear. LEDs would have trouble shining through that anyhow. oh well, now i have to consider the pinhole approach. btw on the Mach there is room just inside the floorboard and door sills for an LED on each side=lit up undercarriage. not very speed racer, more like boy racer, but it's an option...