Lime acts to sweeten the soil. Lime alters/changes the pH of the soil.
Pelletized is just that - pellets, as opposed to a powder form (like flour) of lime that is used in the masonry industry.

Only apply lime if required by soil test results. (you do not add oil to your car without first checking the dip-stick)

>"he said, very quickly, was, "...put down pelletized lime in the spring."

Purdue University does not make the same recommendation, nor do they indicate anywhere that rust is pH related - see link below.

Here is a link that might be useful: Lawn Rust

Rust is generally associated with poor soil fertility. If your soil is highly acidic, then adding lime will bring the PH down and the plants will be able to utilize the nutrients more easily. That may have been what happened with your neighbor.

On the flip side, if your soil isn't acidic, then adding lime would actually make the problem worse.

The only way to know which category you will fall in is to test the soil ph.

Pretty sure that rust is a fungus...have you tried applying a fungicide?

>"Pretty sure that rust is a fungus...have you tried applying a fungicide?"

Yes and no. Actually rust is more a 'temporary condition' - a result due from overly damp conditions and having turf cultivars which are suspect to rust. This is why a fungicide really does no good as a preventative or remedy solution, but as Bill states, better and proper fertilization and cultural practices will.