1. Tubed tires will of course work. Tubeless will work if the wheels/tires will hold air. The rustier the inside, the more likely you will need tubes.
2. Blasting and powder coating or epoxy/urethane painting would both be good.
If budget is a big factor, tubes and bias-ply tires will most likely be the easiest on a budget.
I got truck radials installed by a Goodyear Truck Tires dealer for around $150 each on good-shape powder-coated wheels (they did not need tubes).
