yo DD!
I'd work on that bubble and any other probs such as rust on the wheel well lips; I have used Rust Bullet and POR 15; and good ole Rustoleum primer for heavy rust as well as Rusto for Lightly rusted metal. Depends on da $ situation. I have 2 Dremels a 120vac and a portable one that helps immensely. We've been battling that wheel lip rust for a few years now too; You will most lilely have much more rust in the inner fender area - it is spot welded to the outer 1/4 panel and this method causes all the 1/4 panel rust problems;
& also inside the 1/4 in the area where you removed the rust; I plan to use Patch Panels w/body adhesive soon.
I have a bunch of 1/4 & inner repair links in my site;
http://www.broncolinks.com/index.php?index=459
THere arel also Links to Bushwacker Installation Instructions for their various types.
Some flare info for you;
Flare, Bushwacker Extend-A-Fender Installation in an 87
Source: by Chris P (Maximum) at
http://www.abysmal.com/bronco/suspension/suspension.html
Flare, Bushwacker Cut-Out Info & pics in an 86
Source: by Damager (Da Bonco) at
http://www.superford.org/registry/vehicles/detail.php?id=1371&s=8489#content