In this situation I had gotten a call for a leaking water heater. Upon inspection I discovered the water heater had developed a pinhole sized leak due to internal rusting. I advised the owner to replace the heater. The owner asked for any other lower cost alternatives. I told them I could remove the rusted metal and weld the tank. The owner opted for the welding. The welding was completed and as of 8/31/2012 (today) I have not gotten a call for the heater leaking. I saved the owner the cost of a new water heater and installation. The owner was very happy with the outcome.