Singlespeed & Fixed Gear - Surface Rust

I have a Scapin track frame, and as we all know Italian bikes are not known for their durable paint. I have quite a few chips in the paint, and with humidity and riding in wet weather(even though i always wipe down the bike afterwards) some slight surface rust has appeared in alot of the chips. I want to remove said rust, but not scratch the paint, or make the chips bigger.

Anyone have any suggestions for removing slight surface rust in tight spots?
Also, do you think i should try and touch up the paint then clearcoat, or just use a spray-can clearcoat for rust prevention?

I usually take dremel with a super fine tip to the rust. Then, clean enamel nail polish over the chip if I don't have any matching paint.

You can take REALLY fine grit sandpaper, and make a little pocket around your finger with it, and buff/sand out the little bit of rust. You will be surprised how little it takes to take that rust off. I ususlly put some celar nail polish over it.
You won't remove any paint.

EDIT: 600 Grit Sandpaper works great! Just tried it on my rusty chainstays! :D

Nail polish doesn't weather well; clear enamel from a model shop would be better. Surface rust on a bike frame very rarely turns into anything nasty as long as you don't store the bike outdoors, but for scrathces on steel I take a cotton swab and apply some Kilrust (or similar) rust-stopping chemical primer badness. Job done.

If the rust has been there a while, you should sand the surrounding paint a little bit and make sure the rust hasn't spread under the paint.

Sorry, not a paint expert.

Base coats are sanded before clear.

If you sand the rust, surface of the original paint, repaint the scratch the original color (sand this too) and rattle can clearcoat the frame...it blend nearly perfect.
????

How I'd do it anyway. The high grit wet papers make the paint look dusty (scratched)
The clear will make this dissapear.

I think i'm gonna try this Kilrust stuff, then try what Jeff Williams said. It seems like the best idea for keeping it cherry looking, yet still using it like as a street bike. Once i have this done, the only imperfection on the frame will be a slight groove on the seatstay crossbrace from running super tight clearance tires, and road grit moving between it. Oh well.

Rub that sh*t out with some steel wool and repaint or nailpolish or whatever.

Try a patch bottom of the stay first. If it is cherry red, it needs a white undercoat to reflect, the red is slightly translucent..