You can remove paint and decals by soaking the model in Castrol Super Clean. It'll loosen the paint without damaging the plastic. It comes in a jug about the size of a jug of radiator coolant.
Pour some straight out of the jug into a cheap plastic container. I use plastic containers a restaurant gave me to bring home some leftover pasta, but the Glad containers you can get cheap will work too. Let the model soak in the Super Clean overnight. Scrub off the loose paint with an old toothbrush or whatever is handy (so long as its not so coarse as to scratch the paint). If you can't immerse the whole model at the same time, just turn it over and let the rest of the model soak in the same solution overnight (you can reuse the Super Clean). I use a container with resealable lids so I can use the Super Clean over and over.
For the canopy, you can scrape the glue and paint off with a good hobby knife or razor blade, then use progressively finer sandpaper to polish the plastic. Testor's makes a package of sandpaper in a variety of grits that is much better than what you'll get at a home supply store. Plus the Testor's sandpaper has a plastic backing rather than paper, so you'll be able to use it longer than the sandpaper with a paper backing.
Once you've gotten the clear plastic about as polished as its going to get, you can use Future floor polish to level the surface You can use special clear glue for Clear Plastic (I believe its also made by Testors) to fill in the gaps and what-not.
Alternatively, you can visit eBay and pick up a quality model at a cheap price and get a fresh start. My average for a quality 1/72 Hasagawa fighter airplane kit is $2.00 for the kit and $5.00 for shipping (my local hobby shop averages $10 to $12 for the same kit). Stick with the better brands like Hasegawa, Tamiya, and Revell/Monogram and you should do ok. Some sellers will let you combine shipping on multiple auctions, so your shipping charge per kit will go down. Start with the "Going, going, gone" category first since those prices will be a little more "settled".
Good luck and remember, the key to modelling is to have fun doing it!