Regarding the rust:
Rust failure is determined by "sharp edged" in MA, if a child were to run a hand across it and be cut then it should fail.
And also:
http://www.mass.gov/rmv/inspect/540cmr4/sec404b.htm
(11) Bumpers, Fenders, External Sheet Metal and Fuel Tank A Certificate of Rejection shall be issued if any of the following conditions are evident:
(a) Bumpers. Broken or bent bumpers, fenders, exterior sheet metal or moldings, having sharp edges or abnormal protrusions extending beyond normal vehicle extremities so as to constitute a danger to pedestrians and other motor vehicle traffic. If bumper face plates are removed, bumper brackets must also be removed. The vehicle hood, door(s), luggage compartment lid, and battery or engine compartment doors or lids, if so equipped, must be capable of being firmly latched.
(b) Fenders. Front and rear fenders must be in place. Every passenger motor vehicle which is equipped with tires which extend beyond the fenders or body of such vehicle shall be equipped with flaps or suitable guards to reduce such spray or splash to the rear and side.
(c) Floor Pans. Holes or cracks, due to rust or otherwise, in the floor pans or other body panels which would permit the passage of exhaust gases into the passenger or trunk compartments.
(d) Fuel Tanks. Fuel tanks which are not securely attached to the vehicles body or chassis, or that are leaking.
Regarding the steering: ( Since the regs don't require power steering to be functional, you must comply with the remaining issues, ball joints, tie rod ends, overall lash, etc. )
http://www.mass.gov/rmv/inspect/540cmr4/sec404b.htm
(6) Steering and Suspension.(a) Check for free steering by turning the steering wheel through a full right and left turn. Reject a vehicle if binding or interference occurs during the procedure. With the front wheels in the straight ahead position (and the engine running on vehicles equipped with power steering) measure lash or lost movement at the steering wheel rim.
(b) Lash or lost movement on passenger cars and station wagons, as measured at the steering wheel rim, should not exceed two inches if the vehicle is equipped with manual steering. Lash or lost movement on antique motor vehicles will be measured by steering wheel diameter in accordance with the following schedule:
Steering Wheel Diameter
Lash (shall not exceed)
16" 2" 18" 2 1/4" 20" 2 1/2" 22" 2 3/4" Antique Motor Vehicles Over 1/8 turn
(c) The front end (both sides) of all vehicles will be raised by jacking or hoisting and visually examined. Vehicles equipped with ball joints will be raised and checked in accordance with the applicable instructions and specifications periodically provided by the Registrar.
(d) Reject a vehicle with excessive wear or play in any part of the steering mechanism or of the vehicle that would affect proper steering.
(e) Reject a vehicle with broken, bent or missing shock absorbers or suspension springs.