Guys, Thank you for your input. I am interested in hearing some engine solution options. It could be helpful to understand the source of the problem, because that would lead to understanding a potential ownership, which would obviously be helpful with financing the repair.
I wont know any answers to that, until we dismantle the engine. I plan to get it to a reputable engine builder to do that by the end of the month, but it could be December before I know what we find.
In the mean time, here is a picture of the bits that fell out of the oil drain when we drained the oil.