The method to remove tank rust really depends on how bad the rust is. This is a good start.
http://www.motorcycleanchor.com/motorcycle/how_to/mc_tankrust.htmlAfter the rust is removed there are a couple of sealers out there but the one I am most familiar with is Kreem. It works well, but can be a little harder to work with. I have heard that people are getting very good results with Por-15 tank sealer and it is easier to work with than Kreem.
Don't forget to check your float bowls for rust also in case some of the rust migrated there, in fact you may want to do a complete carb job.
There are other tank sealing systems out there but you will have to read about them, I have never used any of the newer ones.
bob
<edit> I really didn't want to put this one out there but a long time ago, before better tank cleaning through chemistry, we would use simple abrasion. Tale all of the fittings/petcocks, etc off of the tank, thrown in some 3/8" washers (count them going in), then seal up all of the tank holes. Wrap the tank very well, a moving blanket is ideal, and throw it in the dryer (no heat) for a while. It works best if you are single. Women don't understand that the noise is actually beautiful work being accomplished. Another method I have heard of, very similiar, is to do all of the above but seal it in a 5 gallon bucket and then take it to home depot and let them put it on the paint can shaker for a while. I have never tried it so I don't know how well that will work, or what type of abrasives you want to use in the tank.
good luck