how to interpret tamiya painting instructions

Yes, that is correct.  But I don't worry too much about the painting instructions, many times they are off base.  Do what seems right to you.  

I  really like to use Mr Color paints.  But I also really like Tamiya kits.  The problem is that Tamiya aways plugs its own paint.  

So here's a little trick I use.  I go to this site and look at the instructions from other kit manufacturers to see what paints they recommend.  Just search for a kit that is similar to the one you're building to bring up a description/review and there should be (in most cases) a link to the kit's instructions.  Since I like Mr Color I can look at Hasegawa and Hobbyboss instructions to get a general idea which paints to get.

Thanks, just as I figured.

That is a great idea... thanks!