I use it full strength. I pour in a gallon of it and slosh it around real well. Then I try to let it sit for a while on the bottom, sides, front, and back to make sure it really has time to do its work. I pour it back out into the jug it came from so it can be reused. I use a paint strainer when I pour it back into the jug so I can see what is being removed.
It says to rinse with water, but I have found the rust will return after a little bit. So I rinse with water and then pour in some gas or denatured alcohol and slosh it around. Then pour that out and dispose of it. If your tank is painted take precautions to keep it off the tank. It won't necessarilly remove the paint, but you don't want to let it sit on a painted surface.