I love to bring an old hand tool back to life. I often scrounge auctions and yard sales, looking for likely candidates. As long as the castings are sound and the tool is in reasonable condition (and dirt cheap), I'll adopt it and bring it home. Keep in mind that I'm interested in using the took so I'll often do more to it than a collector would.
Most tool collectors are interested in preserving the tool's patina, and that's fine. But the once-over I give a tool (described here) would put most collectors in shock. If you're interested in collecting tools and want to learn more about what you should or shouldn't do to an antique, visit the Mid-West Tool Collectors Association website at www.mwtca.org. They're a great organization.

Disassemble and clean

Remove rust

Sharpen parts if necessary

Reassemble

REMOVING RUST WITH ELECTROLYSIS
Here's a slick way to remove rust from your tools using, of all things, electrolysis. Electrolysis passes a small electrical current from a battery charger through a rusty tool that's submerged in an electrolyte solution. An exchange of ions takes place, and the rust flakes away. Here's how to do it. First, mix up an electrolyte solution (1 tablespoon of baking powder per gallon of water) in a nonconductive, plastic container. Then, remove any nonmetallic parts from the tool. Now clamp the positive (red) lead of a 2-amp battery charger to an anode—an anode is just any large, flat piece of steel (like a kitchen pan lid). And connect the negative (black) lead to the rusty tool.
Slip the rusty tool and anode in the solution so they're a few inches apart. Make sure the tool is completely submerged and the red clip that's attached to the anode is above the solution to prevent it from corroding. Turn on the battery charger, and check that it's not drawing more current than it's rated for (this is where a built-in ammeter is indispensable). If it is drawing too much, or not enough, current, move the tool father away or closer to the anode. (SAFETY NOTE: make all of the adjustments with the charger unplugged!) You can tell it's working when you start to see bubbles forming on the surface of the tool. The average tool will de-rust in about two hours. Turn off the charger, put on rubber gloves to remove the tool, and unfasten the clips. You'll find a lot of black crud on the tool. The quickest way to remove any crud is with an abrasive pad. Just scrub the surface with a pad dipped in warm, soapy water. If the rust is gone, you're done. If not, repeat the process until it is.
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