Not to keep beating a dead horse but the problem with the second test may not have been so much the dilution with water part but the rinse with water and hang up to dry part. I'm sure we all know if you have clean bare metal and apply water to it you're going to get flash rust. This is why we all preach priming bare metal as soon as possible and not even touching it with your bare hands as the oil in your skin can cause rust to happen.