The spot that rust tends to start at is where the rear bumper bolts in to the steel in the wheel well, salt and water sit in that little area and eats that first, so wash that out well and use a rust reformer then paint and heavy undercoating there, rust also starts at the bottom front part of the wheel well because again, salt and water can sit there it's also being flung off the tire and wears the undercoating off.
as for your brake drum not spinning smooth, how did it spin with the wheel still bolted on? the wheel is all that is holding the drums on and they can get cockeyed so it's best just to jack the car up and spin the whole wheel to check the brakes, then pull the wheel and brake drum off and check for wear, make sure that your hand brake is disengaging fully, if it's not then it's most likely the cable, $15 for a new cable if I remember correctly.
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