i have NO experians with C/U7's, but i have heard that some guys cutting of that elastic band to fit a altoids tin in it.
All high carbon steel rusts quite easely, thats why one of the reason they exposy coated that knife. The uncoated parts of the steel, the cutting edge in this case is the only place were it can rust, if the coating is intact. You can prevent rust by just making sure you wipe it dry everytime you use it and oil it once in awhil. Or just let that rust, you will remove the rust everytime you sharpen it anyway... the lazy way <img src="images/graemlins/grin.gif" alt="" />