Hi,
I suggest you avoid steel wool entirely. It will shed small particles that will very quickly promote lots of new rust. If you must use something like this, use "artificial" steel wool, a 3M product available at most good hardware stores.
The best method of rust removal is media blasting, then repainting or powder coating.
For localized removal of rust, there are a lot of products available, some of which "kill" and "convert" rust to a stable compound that can supposedly then be repainted. Seems okay, but eventually the rust might come back.
For painted surfaces like those wire wheels, if the area isn't large and it's more of a "rust stain" than serioiusly deep rust, I'd use rubbing compounds, then come back over with a couple good coats of carnuba wax.
If you think it might help, respray the wheels (probably were Argent originally) or even clear coat them. To prep for paint or clearcoat you need to remove all traces of wax and oil, though. A great wax/oil remover is disc brake cleaner spray. However, test it in a hidden area first because it also is a pretty good paint remover! Otherwise, use lacquer thinner, also test in a hidden spot first, though.
I have found Rust-O-Leum products hold up pretty well, even over slightly rusted surfaces. I sprayed it thoroughly on the inner fenders on my TR4 25 years ago and they look just the same now as they did then. Okay maybe a little dustier, but no rust whatsoever and the paint is still solid. I'm not sure an external gloss or satin finish paint by Rust-O-Leum, such as you'd want for wheels, would hold up as well.
In fact, stripping some parts to bare metal by hand recently to make some body repairs, I found Rust-O-Leum red primer diretly over clean metal to be the hardest stuff to remove with sandpaper or a heat gun. Other finishes I was removing included: original '62 TR white paint and primer, some Bondo (25 years and no problems with it), undercoating, self-etching primer over metal (doesn't stick very well on Bondo), sandable primer layers (stick pretty well on metal and Bondo), sealing primer coat, 20 coats of hand-rubbed lacquer finish coat (cracks in dry conditions, if not regularly waxed). All these other finishes came off pretty easily with a heat gun. Rust-O-Leum red primer that I'd used to cover some nicks and scratches over the years surprised me and was the toughest of them all, but I found acetone will remove it.
Removing rust from chrome, the guys on "Mythbusters" got all ga-ga over how well Coca Cola and tin foil worked... I think it's one of the few myths they have actually confirmed! I haven't tried it yet... sounds like a sticky mess!