Hi there:
Some steel window have steel beads that holds the glass in,Usually these are screwed in, If the screws are rusted in then just chop them of with a sharp chisel, Try to put back the screws if possible if not try to fix with rivets.
Some are just puttied in, Don't use ordinary linseed oil as this goes very hard, use casement putty as this does not harden. us this putty in both cases.
PS Let me no if this is helpful. Yours LT
trampus09, September 2009