<VV> paint/rust question

[Bruce Bacher]

Take a look at these pics to see the condition of the paint on part of my
Corsa:
http://www.bachers.org/images/corsa/img_2155.jpg
http://www.bachers.org/images/corsa/img_2157.jpg

The paint is in fine shape over most of the car, needing nothing more than a
good wash and wax.  A few spots are like you see in those pictures.  I'm not
ready to repaint it yet, but I want to give it a bath and protect it as much
as possible until that time comes.  

Advice, please:
1) Should I sand down the flaky paint in places like you see in those
pictures?
2) If so, should I then paint some sort of rust treatment on?

Anyone have experience with this product?:
http://www.interstateproducts.com/rustkiller.htm