Easiest way to fix paint chips?

[Silverkarn]

I have a bottle of 8T1 Bayou Blue + clearcoat on the way in the mail.

I've done some reading, and i don't know if i'm real comfortable using sandpaper on my car, even if it is 2000 grit

I'm starting to think i wouldn't mind "little bulges" in the paint, as long as the metal is covered.

I have 2 chips on the side of my car, both just a bit smaller than the width of a pencil eraser. Both chips have a small pinhead size spot of rust in the center. Also on the edge of the door there is an are about 2 inches long, and 2-3 mm wide where the paint has come off and it has visible brown rust along the whole thing.

Is there an easy way of going about this? How do i remove that rust? I cant find a "fiberglass pen" at any auto parts store.