I have used pastels in the "past" (sorry). :-)
Go to an artist's supply and get a few different shades of brown and orange pastel crayons (5-6 colors in all).
I grind the pastel crayons into a powder with some 150 grit sandpaper, the dip a brush (dry) into the pastel dust. Apply vertically with the paint brush to simulate rust running down the sides of the hull.
The advantage to this system is that you can wipe off mistakes, and you can practice ALL DAY on the actual model until you get good!
The disadvantage to using this system is that you cannot clear over the pastel (it will dissappear), and you MUST cover the model in a glass (dustproof) display case.
I built a U-boat about 7-8 years ago and used the pastel weathering process and it's been in a glass case (made for the boat) since. No finger prints or dust on it yet.
--Jon