When I got the Zodiac Spear, i got 15 knots of rust in the other treasure chests...will that change if i equip a Diamond Armlet, or is the Spear the only good thing there at all?
If you didn't open any of the forbidden coffers, then you don't need the Diamond Armlet to get the Zodiac Spear.
And also, the Zodiac Spear can be found in the Henne Mines.