I have tried sanding and blasting but I found the easiest way to remove rust and paint is to dip the entire bike in a chemical solution which removes all grease, oil, rust, and paint. It also removes bondo so if someone has done a good job before you, you may not know until it comes out of the tank. Norcal Metal Stripping (707) 838-9470 is located about 60 miles north of San Francisco and took on the job of stripping the bike. They have about a 1 week turn around and can dip any steel part including rusty rims and exhausts!
The parts come out with a small amount of protection from the elements but if you touch the parts the water from your skin will start the rusting process in a few days.