Well I fixed mine properly, but ghetto-ly.
I had the same thing but WORSE. Seriously, it went all around my wheel well into my doors. Ive got pics, email if you want them.
[email protected]
I cut it all out with a grinder, went really far back and re-sheetmetaled everything, drilling holes and using rivits to hold it in place. I sealed everything with sealant, then used bondo over it, primed and spray painted. It looks like ass, but the car is painted flat black so you cant notice anything unless your up close. It took quite alot of labor, because this is my learning car and it was alot of work. Did the WHOLE TRUNK all by myself. Both wheel wells, making new tail lights and repairing ALL rust from the rear doors back took about 30hours to do. Its insane, but I did it really thick and plated the car with dynamat so the carputer system sounds amazing with no loss through the rear what so ever.
Ive posted pics on here of what the car looks like, search for my name. I posted them on www.theaccordforums.com under 3rd gen aswell.
Its a really good fix, sealed tighter than it was stock thats for sure. (I dont have a drain hole anymore either)
Lots of time and work man, usually where people throw the cars out... sad to say, the cars closing in on 20 years and it wasnt a very expensive car. It was made how it was made and it cant be changed. Cars do die eventually.