removing undercoating/rust 1979 300D

I was wondering what the best way to remove stock undercoating is for the at home mechanic?

Also, I seem to have a pretty large rust problem. I have Miracle Paint and would like to attack it from top and bottom but it seems like one of the screws holding down my passenger seat is rusted to the body. How do I get it out? Of course it's the right rear screw, the hardest to reach to begin with.

It seems someone tried to tackle the rust problem before me. However, the material they used (possibly a very large strand fiberglass cloth) has a lot of crevices and I'm having a hard time getting all the dirt off to put Miracle Paint on. Will Miracle Paint even go through the cracks in this material and do anything for my rust problem? Or should I just focus on removing undercoating and miracle paint from that side?

Unfortunately, what had started as what I thought was a relatively small hole has become bigger and bigger as I tried to find clean metal to patch to. It seems like now this repair might need to include metal but I do not know how to weld and it's a pretty irregular hole by now.

Thanks for any advice. (Really whatever I end up doing just needs to stop the rust from spreading and be good enough to keep water out and that's about it.)

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