Paint/ primer thoughts

My paint is oxidized horribly and I have a couple small rust spots and the clear coat is peeling everywhere. I am not wanting to spend the money on a decent paint job but I would like it to look a little better and prevent the rust from getting much worse. I was thinking about sanding it down a little and painting it with a black or gray primer or a combination of the two. Either that or going with a flat black or flat gray cheaper spray paint. Any thoughts on this? Any better ideas?

diy - 1 gal of rust-oleum flat black enamel -2 quarts acetone-2 to 1 - with prep materials,and a spray gun.about $150 for the whole car, if budjet doesnt allow, hit the bad spots with 600 grit paper and primer with color of your choice.

Lets see some pics...