yes quite a bit of rust but not bad for a 40 year old car
what you see in the engine bay is zeibart which is a waxoyl, its horrible stuff real pain to remove, ive used all sorts to try and get rid of it, an electric heat gun, paint stripper and scraper was the best method. Paint strippers sort of smears it over but does work eventually.
WOuld suggest trying to remove as much as possible with a scrapper to get most of it off before using nitormors paint stripper or a heat gun.
I am picking up a compressor this week i won off ebay so i can start sand blasting it all off, hopefully this will be the best method.
Regards
Chris