It looks alot better under the clear IMO. I usually use vinyl decals but on occasion I've buried water slide type decals. I usually paint all my basecoat colors, then lightly sand the base in the areas where the decals go, with say 600 - 1000 grit or so. or a light pad of some kind. You want to get rid of any bumps or dirt in the basecoat so its smooth in the area the decal is. Any defects will get magnified somewhat by the gloss clear, as decals are usually matte in finish.
Put the decals on and I usually let it dry overnight or so. You want the decal dried on. I keep pushing the time quickier and quickier so far no problems, but overnight seems good. The water slides ones may dry quicker not sure.
The first and second coats of clear should be light, as you don't want any of the clear to get under the decal, because it will lift the edges if it gets under the decal. Than just as many medium coats as you want.
It will not look like a decal when you are all done. When I do decals buried in clear or paint graphics buried in clear, you can't tell the difference. I often mix the two and no one can tell.
