How to fix the rust in pool metal walls!? [pics included]

You can probably fix that -- for 5 - 10 years -- with flat section cut from a new galvanized pool wall section. You'll need some high grade duct tape, some basic sheet metal skills and tools, and maybe a pop-rivet gun. If you grind the rusted section, and paint with a zinc rich paint. Here are some links:

Info:
http://www.briteproducts.com/zincpaint.php
http://www.galvanizeit.org/specifyin...ing-hdg-steel/

Safety:
http://www.amazon.com/exec/obidos/ASIN/B000RKS04G/poolbooks
DEWALT DPG82-11C Concealer Clear Anti-Fog Dual Mold Safety Goggle
*OR*
Dewalt DPG20M All Purpose Synthetic Leather Palm Spandex Back Velcro Wrist Work Glove, Medium

Surface prep & repair:
Bosch 1380 Slim 7.5 Amp 4-1/2-Inch Slim Grinder
DEWALT DW4523 4-1/2-Inch by 1/4-Inch by 5/8-Inch General Purpose Metal Grinding Wheel
Rust-Oleum 7585838 Professional Cold Galvanizing Compound Spray Paint, 20-Ounce
*OR*
CRC Industries 18412 Zinc-It Instant Cold Galvanize Zinc Rich Galvanize Coating

Sheet metal patch:
Wiss M300 MultiMaster 3-Inch Cut Capacity 10-1/2-Inch Straight, Left, and Right Cut Long Handled Snip
Stanley MR100CG Contractor Grade Riveter
Stainless Steel Blind Rivets, Inch, Meets IFI Grade 50 Specifications
Scotch Heavy Duty All-Weather Duct Tape, 1.88-Inch by 45-Yard

Notes:
+ I'm no longer actively buying construction tools. But the contractors I've talked to recently all seem to feel Dewalt has good price/quality characteristics, and that Bosch tools are very good, when they are not too expensive. Milwaukee 'ain't what it used to be'.
+ Do NOT use cheap duct (not: duck!) tape. You'll regret it.
+ You can try the repair without the patch, but you'll likely get better results if you do both. You'll have to get a pool dealer to sell you a galvanized wall section, unless you can find heavy galvanized sheet metal elsewhere. Do NOT use electroplated duct-work sheet metal; the galvanizing won't last long.
+ These are all Amazon links; you can probably find most of these things locally; however Amazon has a great return policy . . . if you return them promptly. So, don't order them till you are ready to go to work. That way you can test them immediately, and return them right away if you are unlucky and have a problem.
+ Depending how high the concrete was poured at the bottom of the pool wall, you may not be able to drill and pop-rivet all the way down.
+ Aluminum pop-rivets *may* be OK in this application, but I'm not sure. I *know* SS rivets will last.