Re: Need advise... New weapon needs work...
If there are rust spots on the surface metal of the rifle...it is very possible that there are rust spots in the bore (or other internals of the rifle) that you should look for before you pour any money into what might ultimately be a pit depending on your intentions with the rifle. Before you get to far into worrying about the appearance, I'd have the rifle checked out by a reputable smith and then go from there, or at a minimum, go through it with a fine-tooth comb on your own if you are comfortable with the disassembly/reassembly of the rifle. Beyond that, before you get all hopped up on how it looks, HOW DOES IT SHOOT?!?! If the inspection goes ok, shoot it a bit and get and idea of what its capable of before you proceed. If she's a keeper, might be worth a trip to the shop to be cleaned, blasted, and then cerakoted (or other finish of your liking).
That said, you said you tried oil and steel wool without success, but you didn't say what kind. If you haven't yet, try some basic rem oil and #0000 steel wool. It should remove rust and leave the original finish intact unless you go nuts on it. Beyond that, there are numerous other "home remedies" that you can try. Run a search here using the search engine linked to in my sig line for "rust removal" and you should have some good reading to get through at your leisure.
Good luck and welcome to the Hide!