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Wow, I don't know on this one. I would be as nice as possible to the seller and really, really try to work things out (ie. get the car back to him and your money back).
Going to court should be your last resort. Don't threaten it. Don't mention it. It hurts peoples feelings and makes people irrational. It would be a long mess, and then you'd have to collect. And winning is only half the battle. Collecting is another thing.
Be really rational and be level headed and nice. Say that it wasn't what you were expecting. Tell him there are issues. Tell him you are a true Porsche guy and it just will not work out. Really try to work it out on the human level. I cannot stress this enough. Even though emotions are running at redline, take a step back and go in and let the blood return to your head.
What's done is done. Don't beat yourself up over it, as you did what you thought was right. A correct floorpan replacement, as Techweenie will tell you, is a very arduous and very technical replacement. It costs $20K to do right. And you have $20K in rust repair in the car you just bought - at least. As you know, these cars were built to rust, and as words of wisdom that Matt930s said, there is no such thing as a 'rust free' car. It's there somewhere. Even in Southern California cars that never left.
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