I had a 97 Wrangler sport before the 04 Rubicon I have now. The 97 had the same rust issues on the top of each front fenders. I tried to repair it but it came right back. I ordered 2 new after market fenders from US Auto Parts on line ,one was $85. & the other was $140. + $35. shipping. Both arrived in good condition then I took to Rhino Liner and had them sprayed in and outside. They looked and fit good so I just left them black. I liked the look.
Later on down the road when I was cleaning under and around my frame I noticed a lot of mud caked inside the rear part of the frames, when I was flushing the mud out I saw large thin pieces of rust falling out so I got as much out as I could but after that I knew this was serious and wasn't going to end. I bought the TJ when I lived in Montana at a used car lot (Jeep was built in Canada) plus I didn't know of any Jeep Forums to get helpful information like we have now. I was clueless, you are very lucky you can draw knowledge from us.
Any how as luck would have it, since then, I have relocated to Western Colorado and joined a Jeep Club & thru a friend who traded this Jeep for a new JK , I came across the gem of a TJ Rubicon that I have now.
All the advice that you have been reading in this thread is great for your situation, I just passed on what I learned. Check inside that frame!
pic of my 97 TJ sport w/ new front fenders...
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