There are several filters on the market that will take out a measure of the iron content in the water, what may help is to keep a container of bleach in the bathroom and periodically pour a small quantity in the bowl and allow it to set overnight.
As for drinking water, I have some personal expirence here. I own an eSpring system that is incredible. This system is meant only for drinking and cooking as the filter cartridges aren't cheap and since they filter down to 2 microns, the flow isn't enough to take a shower or fill the tank on the toilet in any reasonable amount of time. It does, however, remove 99.9% of contaminants as well as kill any cysts and bactiria without removing the benificial minerals like calcium and magnesium. The cartridges last about a year and the whole system costs about $650.00.
I did my homework before I bought this system and found it's rating higher with NSF to be higher than any other system on the market.