Rutile? Spawns most often in watery biomes, like oceans and rivers. Actually, really only spawns there unless you have a up to date Nether Ores mod. Then there is a Nether Ore version of it.
As for processing it... What pack are you using? If it has RotaryCraft, an extractor may be better then using the default mariculture method, depending on how far into RotaryCraft you are. That is, if you aren't neck deep in it yet, I wouldn't suggest diving in too quick. It's the ideal solution for many ore processing chains, but believe me, it's not easy to set up.
I mean, it kinda is, but the dedication to the mod needed may drive you a bit mad if you just want to jump right into it.
You may be better off ignoring my advice to use RotaryCraft if you aren't dedicated to using it and don't have a computer with a good CPU.