Swazo
Hard-core CEG'er
Personally, I'd restore the wheels/tires as close to new looking as possible. Get it all working right with greased up parts.
BUT, you can save the OEM finish a bit and remover some of the overclouding rust (but not all of it) by using grey scotchbrite pad (not green). You can get a sign painter brush and redo some of the original stuff, then sand with the grey pad to partially it back take off to keep the worn look, but have it much more clear. Some sweet Von Dutch style pin striping, maybe some matte clear over the body, maybe an aluminum seat (You can get sheet aluminum from Lowes for a good deal and make your own) and you've got a sweet little kustom pedal car.
BUT, you can save the OEM finish a bit and remover some of the overclouding rust (but not all of it) by using grey scotchbrite pad (not green). You can get a sign painter brush and redo some of the original stuff, then sand with the grey pad to partially it back take off to keep the worn look, but have it much more clear. Some sweet Von Dutch style pin striping, maybe some matte clear over the body, maybe an aluminum seat (You can get sheet aluminum from Lowes for a good deal and make your own) and you've got a sweet little kustom pedal car.