That's exactly what the my LBS down in FL said when I took it in to them. I'll take a couple more shots, there are some larger rust spots on the BB and on the right hand side of the top tube, but like I said previously, nothing that concerned my mechanics.

So a follow up question now...What should I do to treat the rust? The kid I bought the bike from said that he treated the rust spots with petroleum jelly. The spots are black, show no iron oxide reddish coloring in them. They also have not gotten any worse since I bought the bike.

Thanks to everyone for the input, it's much appreciated!