The "penny" method is basically using copper to scrub off the rust without damaging the finish. Since pennies are now copper-plated zinc, it may not work as well. Other proven methods are Kroil or light oil, plus brass wool (Brownells has it), 0000 steel wool, or simply a hunk of wood. Speaking of wood, if the stock is as bad as the metal, Kramer's Furniture Restorer works excellently. I used it on Martini-Henrys from the Nepal cache.
As to the bore, there's likely a lot of fouling along with the rust. Remove the wood, and use one of the foaming bore cleaners (Wipe-Out, etc.). It will probably take numerous applications, alternating between patching and brushing. Some milsurps have taken a month or more to finally come as clean as they are going to. Once the fouling is out, Evaporust will take care of any remaining bore rust. It also removes bluing, so use caution.
Electrolysis is certainly faster, but somewhat fiddly, and I've never gotten good results. Others have excellent results, so it's probably operator error.