If you have one or access to one a small HF type sand blast rig will take it to grey metal. It's at that point that you can epoxy seal then prime and paint. This can be done fairly neatly without disturbing/damaging the surroundings. Best way to do it. If it's not grey there's still rust there.
Hammer on dolly will straighten that out just fine. SPI forum is where the bodywork (jing-kings) are at. Great site for that type of stuff.
Is that full float for sale? And for anyone perking their ears up (Spanks) I need a set of drive hubs for mine.