After prepping the engine room floor, swims, uxter plates, etc, with a wire wheel on an angle grinder I vacuumed it out, wiped over with a damp cloth and used a coat of Vactan to convert any rust that hadn't been removed mechanically. Then went over it with a couple of coats of a Hammerite type direct to metal paint - I can't remember the brand name but it wasn't Hammerite itself. I know that wasn't the best choice of bilge paint but it's what I had so that's what I used. In hindsight having done all that prep I should have bought a can of Jotamastic epoxy.
Anyway, about a year later the rust was bubbling back in places where condensation sat around. Perhaps there was a reaction to the xylene thinners in the paint, I don't know. The tannic acid rust converter in Vactan is fine, but I think that the water based polymer matrix is its weakness. It's not a good metal primer which is in effect what it's being used for.
It hasn't. I opened it up to have a look last autumn. Epoxy doesn't just peel off unless it wasn't applied properly in the first place.