Well guess I found the source of the knock. the thrust bearing at number 5 cap was shot but the block is still fine. likewise for number 8 rod bearing however that journal was slightly damaged. number 3 main was also coming apart.
Pic? The engine was knocking correct? If so we can assume #8 rod, the crank (at the very least) are going to be replaced.
OK it's time to do some soul searching, you can get away with just fixing #8, but by the time you pull the heads, replace all the gaskets you are basically into a rebuild.
The question is, what are your long term plans for the car? do you want to mod it? because now is the time, what is your budget? Do you have transportation now that the car is apart? You need to seriously think these items through for the next 12 hours, come up with a plan and then execute.
The way I see it you have about 5 options.
1. Repair what you have. At this point I think it's pouring money down a hole you're at least out a crank a rod and all the misc parts to go through the motor.
2. Rebuild what you have. Buy a crank kit but keep in mind if you replace the cams that's $$.
3. Buy a used motor. Not a bad deal, especially if you can find the history of the engine, go ahead and replace all the gaskets and seals before installing it. This may be your cheapest, and best way out, get it back on the street, and you can keep the old motor and mod it for the future.
4. Buy a rebuilt motor, also a decent possibility if you need the car running soon, there are many stock reman engines out there at reasonable cost.
5. Build the motor of your dreams....lots of $$$$ and not on the road for awhile.