Your're right, I modified a Taylor 450 and I had to take off the metal panels and the foam to do some welding and the metal was rusted pretty bad. I used a grinder with a wire brush and cleaned the metal good and primed it with a rusty primer and painted it. Then I insulated it with fiberglass bats and relined it. Alot of the foam was loose, I think the foam came loose by the metal expanding and contracting and then it allow the metal to sweat. Metal is going to move around when it's being heated. Unless they make a foam that is flexible I think the manufactures are going to have a problem with the foam pulling loose from the metal tank.
How old was your Taylor when this happened?
I think spray foam is the best insulation. Priming the metal first is a great idea...I have a newer Taylor, hopefully they started doing that in the manufacturing process.