Faced with this problem, I've done some experimentation and written an article about it.
This is a short summary. Full article is here:
http://www.smallcuts.net/articles/leadrot.jspFaced with rot like this:

I decided to tackle the issue and see what works.
After tumbling:

Some parts needed tougher handling: I tried wire brushes and finally scalpel work:

Then I primed the parts and waited for a year to see if any problems would develop:

Nothing was evident, so I proceeded to finish painting as normal:

To summarize:
- remove rot physically
- fix damage
- prime and paint as normal