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By harnessing the full power of Google, I found out this is call 'Alligatoring'. And i'm pretty sure I basically jumped the gun on sanding and recoating, not allowing the red coat of paint to fully cure.
My dilemma is this; I can sand it all back down and start over, or I can leave it as is and carry on with my plans. The 'alligatoring' is actually really symmetrical, It is smooth(like paint should be) around the corners, and alligatored on the more flat surfaces. It almost looks like it was done like that on purpose, and I think looks kinda cool. I just don't don't want a finished product that looks like sh!t.
And if your wondering why I put black over that nice red color, I am trying something different. I got the idea from an auto body veteran, he has never done it but I thought it was a cool idea.
Paint two different colors, sand through the top color in sort of random spots so the under color shows through.
Before this alligatoring business I figured that if I didn't like it that I would simply paint back over it. Now if it turns out bad I will have to start back at square one...