Actually, I bought some stuff from walmart that does the job quite well. Its "rust remover; jelly rust remover" by klean strip (spelled correctly). I just bought it to see how well it would work.
I was entirely surprised. With in 5 min the surface rust was gone, then in 10-20, most of the deeper rust was visibally reduced. I wish I had a camera so I can show you guys.
It says that it contains phosphoric acid and alcohol, so I assume that it can be mixed with water, but haven't tried it and it seems to work better when generously applied.