Well, in the long-term sense there's nothing you can do about it. See that little lip on the inside where the seam is folded over? Well, one of the by-products of combustion is water and that little crevice there, which looks to run completely around the pipe, is where it can collect and start the rusting process from the inside out. That means that what you see is not all you've got.
That said the easiest fix - and it may last a year or so but no longer than that - is to braze it shut with brass rod and then paint it. Just fine someone with a torch and buy yourself about a quarter pound of pre-fluxed brass rod at your local welding supply place and sit down and do it. Its kind of like a cross between soldering and welding, good practice for the TIG torch though. Brass can withstand the heat and will fill the hole.