Tom,
By your description he might have used a product called Extend. It is made by the same company as Naval Jelly.
Naval Jelly removes rust, but you must wash it off completely, (as ottfour says) before priming and painting.
With Extend you just scrape any loose rust off, but don't completely remove all rust, and brush on the Extend. It "neutralizes" the rust and when it drys it becomes a good primer for your finish coat of paint.
Here is a link to it on the Doit Best web site. You can find it at most Hardware Stores, and Home Centers...
HTH, Keith