Gloss base is primarily to prevent "silvering" where the decals backing takes on a frosted appearance. MicroSet is applied first to prepare the surface, then the decal, and then MicroSol. MicroSol is more aggressive and I would test it on a decal off the model before using it. If the decals you bought are aged, buy some MicroScale Decal Coating or get some Testor's Spray Decal coating. Either of these can rebuild the decal's surface and prevent if from behaving badly. I would say that decaling over pastels or chalks is a bad idea. After the decal is fully cured (about 24 hours) then spraying it with Dullcoat is the way to go to seal it and blend it into the surrounding surface.
I would not let the decal fully leave the backing paper unless it's some tiny thing that needs to be applied with Tweezers. When it's off the backing paper it can get out of control quickly. If it folds back on itself, it's hard to straighten out again and may be scrap.
Dip it in the water, take it out and put the wet decal on a non-porous surface. Occasionally test it to see if it's breaking loose. When it starts to move, slide it just off the edge of the backing, put that exposed edge at the starting point of where it's supposed to go, hold it there with a Q-tip or a small brush and slide the backing paper away from the decal leaving it on the surface and just about in its final position. If it's a bit off, add a drop of water and push it around with the Q-tip.
