Quoted from TractorDoc: I am going back and forth between pulling the cabinet side rails to clean them up and leaving them. There are no plans for a cabinet repaint at this time, but I know a little time at the buffing wheel will have the rails looking nice. Yep, I'll probably end up pulling them.
Pulling the rail will most likely damage them to a certain extent, near the nails. You can always polish the area around the nails and the good part is that you can buy new rails as a last resort.
If you do not intend to repaint the cabinet, I would not touch the rails and use some tape on the wood to protect the cabinet during the polishing of the rails in place. Also, if you replace the rails or take them off, make sure to use little wood screws to re-assemble them instead of these twisted nails.
Yves