does anyone have any experience with a rusty frame...was cleaning Abs sensors and noticed rust on frame in left corner by wheel...rest of frame looks good...I have a strong hunch most body shops will not deal with this.

 

There are multiple threads detailing rust repair on the typical rust prone areas of an X100.

Rear Rocker rust

This is why I'll never drive my XK8 on salted roads.

 

Do you have surface rust or penetration rust? You might have found this just in time. Even if it is just beginning to flake, the structure could still be fine. One thing that I would recommend is that you consider that rust in one spot is usually indication of rust elsewhere. Many rusting issues with cars are from the inside out due to moisture and salts. The reason that salts are such a problem is that they draw moisture and additionally provide an enhancement to the oxidation. You can see this effect if you apply ice melting chemicals to concrete. Adjacent untreated areas will dry out in the sun, but the treated concrete will continue to look wet for many days after even without precipitation. This is why it is so important to wash off your cars and equipment in the early spring after the roads are finally washed clean. You have to dissolve the salts thoroughly to get them out. In many cases, I have used dilute white vinegar to remove the salts. It works very well.

If I was in your position, I would probe the area in question and other potential areas and make a decision. If you are lucky and do not have many structural issues, I would flush this car out, including internal areas like the rockers with lots of water. I recommend that you use a the product Corrosion Free. You will have to invest in the hoses for internal application unless you can work with a dealer to thread them inside everywhere such as frame rails and rockers and then do the external application. It is important to treat inside areas as well as the outside. I have found this to be a superior product and it has ceased corrosion where it has started.

I did this to my own rust free xk8 and my mechanic is amazed at how great the mechanicals and hidden areas look. I keep a few aerosol cans of this available to treat the wheel wells every so often after I rinse the edges out.

Good luck, let me know if you have any questions.