Areas that rust - Front panel lower
Lower Front Panel Rot
This is a common area or corrosion. Although this section can look bad, its usually just the front panel that rots where it meets box section behind bumper - wholly due to the fact that any water tends to sit there and has nowhere to go, eventually getting under the join and causing the lower panel to rot out.
Heres a video from 'Covkid' and 'Chickenkoop' showing an easy way to repair this section using flat steel, bent at right angles in a vice or a preformed right-angle section available from panel suppliers, drilled and puddle welded to complete the repair. You should spend time cleaning back to clean metal and treat any rust accordingly.
Tip: You'll need a large grinder with a new disc to get the reach needed.
http://www.youtube.com/watch?v=LzA_xCEw0JQ
The box section itself can corrode but usually all thats needed is a clean up of the front panel, cutting out the rot and welding in a bought or made lower section as shown here.
If you want to improve drainage in the area, drilll two or more holes into the horizontal section, just larger than a section of steel tube, taking these tubes through both layers so they exit at bottom, then making sure tubes are flush at top, weld them in. This will ensure any water which gathers has at least one or more routes out