Looks good to me! I have one that size (well, maybe smaller, a 50cm), 760 "Pro" series. Nice bikes. Treat the rust with anti-rust "medication" or even Oxalic acid, and you should be good to go. I have a Trek fork that had some rust "pits" in it. I scraped away the paint and just dipped the whole fork, one prong at at time, in straight wood bleach (put in the jug from the top and it stayed right there). That treatment completely scoured out the rust from those pits, so they were easy to fill with body filler and sand out. This was a Reynolds 531c fork.