1) Not sure on that one. i never thought of older bikes having lead paint. I imagine it could be very possible. Yikes, I should be more carefull!

2) If you want to prevent more rust go with Weigle Frame Saver, if you want to completely remove it, go to your local hardware store, and get some deck bleach. It contains Oxalic acid. Mix up some of this with some water in a large container (strength depends how long you have to let it soak. I did about 1 part acid to 3-4 parts water) and dip the whole frame in it. Be sure not to have ANY aluminum in the acid it will tarnish the steel. Let it soak till the rust is gone. (for me it was about an hour). The acid wont hurt paint either, but make sure to clean the raw steel with soap and water first. After the rust is gone, I would Frame Saver the insides of the tubes.

Good luck!

-Jerry