looks like you had a leak at one point ...
You are on the right track, all you can do is keep cutting, and as Def said, you could find clean panels from a donor car and patch them in, or you can just weld in metal to replace what you're cutting (it's just on the inside anyway) and then dose liberally with weld through zinc primer and por15 to keep it from rusting again.
Hope that helps, but it looks like you're in for some work there.
Good thing is, it's not the whole car, just localized.
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