I think trying to remove the rust either physically or chemically risks removing the letters as well. Also, sealing the rust will preserve the patina of the piece. But start with light coats of sealer after testing in a less visible area, A thick coat can darken the color quite a bit. This might enhance the lettering or obscure it so better to proceed with caution. Also, you might consider adding a sheet of thick glass to make a top if the sealer doesn't do the trick. It would protect both the luggage and the lettering from each other.

Try this. Hang the television to the right of the wood stove on the wall opposite the french doors. Use the wall with the high windows for a looong sofa and add two chairs across / angled slightly - low back so you can look over one to television. use console / sofa table on entry /bed door wall just past where entry door opens so you have a lay down surface. Forget glass, it isn't for this era and won't make it feel bigger. Paint ALL french doors inside and out and small windows and entry door same color and trim same color too. Try a charcoal rather than a black - something in the blue-green-gray shades like new providence navy. do all the walls in kitchen and living in a warm white - this tone has the wood as an undertone - http://www.benjaminmoore.com/en-us/paint-color/woodash then, for the cabinets . . do a bungalow thing and go deeper on the cabinets to a classic drabware tone - with the wood walls and floors / try bm bracken biscuit http://www.benjaminmoore.com/en-us/paint-color/brackenbiscuit these will all go together like gangbusters, keep it light and bright but interesting and work with a new blue green gray back door in a tone like bm beach glass http://www.benjaminmoore.com/en-us/paint-color/beachglass templeton gray as a counterpoint on some craigslist piece of furniture . . add warm undertone tan and oatmeal nubby tweed upholstery to start . . the teal navy gray will work with the black iron stove and accents without going black. start keeping the left door to the kitchen closed and get a door stop to hold the other one open permanently . . this will work because you need a little more wall to make the tv work well - in the kitchen, pull your table away from the wall just a tad - consider a padded bench on the wall to provide a kind of sitting space in there and put the chairs across - if you shift your television to the wall (high enough the heat is not an issue , you can still have big speakers work well - and remote the media equipment - run the wire and patch the holes. Hang it mid-height - eye level when you sit plus 15 degrees . . check out the amazing sconces you can put on the entry wall - shades of light petersik pendant with home-made trim wood brace to pump it out from the wall since the power is high? over the console? round wood table in middle - even a hd butcherblock round on a painted drum base in trim tone? With those tones - teal gray, biscuit, creamy off-white, muted blue-greens - paint your white chairs and a hand me down bench wythe blue and find a graphic sunbrella print with a little blue green, chocolate and orange for cushions and pad skirts with velcro at the table . . make a galvinized pipe leg / plank 1 x 12 / clear finish console for behind the door . . now you are cooking with gas . .

Well, for lack of a better idea, since you find it a drafty little space. I'm assuming the draft comes in on the right? Most of the necessities in the area are located of the left side; i.e. vent, thermostat, light switch etc. What I would do I think is caulk up the drafty spots, maybe even add sized poster board wrapped in batting I covered in a gorgeous fuscia with diagonal grosgrain ribbons every which way covered with a heavy velvet to be attached to the area above & below the window. (Of course remove the drapes that are hanging in there). This for the purpose of using it as a pin-it board for notes. Attach a table height board covered in felt to carry across the full width of the little room. Leaving just enough space for a comfortable little antique desk chair. Paint the back wall a bright cobalt blue, paint the ceiling a silvery pearlescent white. Find a way to attach a clip-on task lamp. And stretch a heavy duty enough wire across the top of the opening and complete it with a heavy doubled velvet drape with a drooping valance. Place a swag with fringe & jewels on it to be closed when not in use. Voila intrigue is yours!

Add a fabric wall hanging – looks like there is space on the wall behind the Chesterfield loveseat? A woven shawl or table runner from your travels overseas (if you've bought anything) on a dowel would complement your Tintin in Tibet art, and not add clutter to the space. And an ottoman that doubles as a storage box or small coffee table (put a tray over it as a stable base for your coffee) would be nice to put your feet up on as well as add to the bohemian look.