Well, I have made some progress. The passenger side is pretty close to being ready for paint. Just a little more wire brushing and fill in the the small pin hole. The driver side has been a little more problematic. I've been trying to work around the firewall padding and its been rather annoying. I found the source of my leak. Its a leaky clutch master. The fluid dripped down and seeped in around the fuse panel. My floor boards have seam sealer everywhere. The whole firewall is covered in it. The fluid dripped down behind the seam sealer, so a lot of the rust was covered up.
Passenger Side:
Driver Side (I obviously have some more work to do, but at least all the fuzz is gone). I wiped down the passenger side, but not the driver side, so a lot of what you see is rust dust:
Its made itself right at home, pushing my other vehicles into the driveway.
I got started on my XJ bucket seats tonight, but while drilling out the studs on the old XJ mounts, my drill battery died, so no pictures of those till tomorrow.