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This is my first restore and I don't wanna go crazy with the pocket book. The under side of the truck has a lot of rust on it. For example, I'm working on the rear brakes and there is rust on the back side of the brake shield and on the brake lines and the rear end itself. When I get the truck painted will that get sandblasted off and I don't need to worry or should I do that myself? Is sandblasting too aggressive? Is there other means?
If the brake lines are rusted they should be replaced. You don't want to be driving when a pin hole finally opens up. These old trucks are a single pot brake system. If that line fails you will not have any brakes.
You need to be concerned with cancer rust, not with surface rust.
I seriously doubt the rear axle and brake backing plates have any serious cancer rust - the cancer would have made itself very obvious in thinner parts of the truck, such as the cab and the fenders.
The only surface rust-free truck is one that hasn't left the factory yet.
The hardened parts such as the rear axle and frame ( and more!) will all take a whole lot of punishment and still be serviceable even after the cab has fallen apart from rust.
As mentioned, critical soft parts like brake lines should be inspected and replaced if cancer rust is found. Although made of the same material, fuel lines not so much a problem because there is no pressure in them, and a hole there will only leave you stranded, not make you fail to stop.
Critical body rust areas that might need attention soon are the front cab mounts and the core support, especially under the battery (if a '65/'66). If they rust through, the cab and front end will sag causing problems with steering and possibly rendering the truck undriveable if the front end collapses - but it takes a lot of cancer for that to happen. You should be seeing alot of missing metal in other places first - like no floorboards anymore.
The rule for restorations that helps prioritize your work are to fix the mechanical safety issues and upgrades first (think brakes and steering for example), then the drivetrain (engine, transmission), then body and paint are last.
Can you post some pictures of these areas? We can help better determine your rust problem.
Front cab supports
Core support - from under the fender looking forward, battery side
Lower cab pillar where it joins the floor, beneath the door hinges. Both sides
Backside of the brake backing plate, if that is your big concern.
Floor pans
Anything else that concerns you.
As banjo said I would not be concerned with the rear axle to much. They are pretty tough. You may want to pull the fill plug and make sure the diff has plenty of lube.
Surface rust, like what you have on the frame and all over, can easily be removed with a wire wheel on a drill, or sandblasting. It is still time consuming.
Cancer repair is much more difficult, time consuming and expensive.
Looking at the amount of pitting on the frame and rear axle surfaces, I suspect you will find a great deal more of rust repairs in the sheet metal as you disassemble the truck.
Snapped bolts and spinning nuts will crop up quite a bit if you intend on doing a cab-off restoration.
If you are committed to this for the long haul, the '65/'66 trucks are the most desirable for restoration, but it will take a serious amount of commitment and money to "restore" the truck.
My suggestion would be to drive it for a while, and do upgrades like power steering and disc brakes, while you decide how much you can put into it to make it look nice.
Just my opinion, and I certainly wish you the best of luck!