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Looks to me like the seal around the vent is failing. If it was me I would hit the wreckers to see if you can find a better one. Failing that, get creative and use something from the weatherproofing section at the hardware store. They sell flexible putty like strips sometimes called "crack seal" which will work pretty well. You could also use a polyurethane sealant, but not the best solution because removing the vent for any reason would be difficult or impossible.
edit - that's a nasty environment for rust to breed, I would clean that up with soap and water, then something like CLR to further clean it. Then spray it down with a rust preventive oil and leave it like for a while, it will drive the moisture out. I use this product it works really well.
edit - that's a nasty environment for rust to breed, I would clean that up with soap and water, then something like CLR to further clean it. Then spray it down with a rust preventive oil and leave it like for a while, it will drive the moisture out. I use this product it works really well.