I bought some spray stuff from wallymart. The instructions say to remove as much rust as possible, then apply. I think the stuff is solvent based. I have had great luck with it, but be sure to let it dry / cure before you do anything else to it. I have never used the water based stuff. Guys I work with just buy the Rustoleum primer or paint, which contains the converter.
I agree with Dash, that the converter is not penetrating the rust.
Tom