paint chips and rust

A couple years ago some rocks off a dump truck hit my car and chipped the paint. I didn't know how to fix them so I went to the dealership and bought some touch up paint. It looks awful and now one spot is rusting. Is there a way to fix this to blend it in with the rest of the car?

Photo Album - Imgur

I'm going to get an appointment at an auto body shop that was highly recommended to me. I'm hoping it's not going to be over $500.