Update on my car. Need Help!

Incase you have been reading my previous posts about my engine noise. Just talked with my mechanic who told me he had bad news. Said he took the car up to a mechanic who works for ford and they told him Its the connecting rod to the piston banging up against the cylinder head. Said the only way he could fix it would be to replace the engine. Also said his ford friend checked any warranty work and that the rear end was taken out and replaced at some point. Said he thinks what caused this is Abuse. Said the car could run like this for years or weeks. Is this basically piston slap? What should I do? I have had the car for like 2 weeks and now i feel like ****.
Opinions? Gonna put some mobile 1 in the car and see if it helps.

maybe i didnt really understand waht he was saying. He didnt even seem to know how to exactly put it. I put soem mobile one in the car and it has silenced some of the noise and the car sounds seems to drive better. The car honestly drives like brand new. If it wasnt for this noise at around 3-4k rpm. The one thing i question is they didnt even pull the engine apart. They basically just listend to the sound.

Oh and heres the kicker. IT doesnt make the sound at all in 3rd ,4th and 5th. And after hte mobile one and a warm engine it doesnt make a sound either. No matter what RPM or WOT or not. First ist he only gear that it constantly makes the noise in. Explain that? IF its what he said it was I would think it would make the noise no matter what gear.

Its my daily driver and like i said I can drive the car without it ever making the noise if i choose to keep the RPM's low. I put some mobile one in and a motorcraft filter and gave the car a tune up. And im just gonna start saving for a new motor in the meantime. But honestly it hasnt gotten any worse.

Not sure what oil was in it b4. Im sure just generico oil. I put in 5w30. When the engine is cold it is louder. Cold engine at about 2200 RPM u can hear it in 1st. When the engine is warm it wont start till about 3k in 1st. Cold engine and second gear u can hear it at about 2500RPM. Warm Engine in 2nd with Mobile 1 in and i didnt hear it at all with the pedal to the floor and took it to 4k. 3rd never makes the noise. If I free rev the car with the clutch in it makes the sound as u blip up the throttle but its very brief and lasts but a second.

The car seems to have been played around with. It has some odd looking pieces of steel welded to the chassis. Kinda like a subframe connecter cept the run Vertical to the car not across it. The front tires are very new looking GForce Ta's and the backs are New looking Futura wal mart tires. (dunno if this means the burnt tires up fast). Odd thing is the car had no mods or signs of being modded. No intake stock exhaust stock filter ect.

My mech is a faimly friend. He isnt what i would call a pro at the modular ford. But he does own his own Shop. He said he knows a Friend who is a Ford Tech. He took it to the ford dealership on his lunch break and they diagnosed it as Somethin to do with the Piston hitting something in the motor. When I asked him so you mean like Piston Slap. He said Sorta. He made the statement it could run for weeks or it can run for Years. Which sounded pretty damn broad and to me means he wasnt very knowledgable to the cause.

Im going to try and power up my Digi Cam and get a sound clip of it sometime this week. Im trying not to worry about it. Everyone comments that the body is in excellent shape. It was a georgia car so its in great physical condition. If I can save up some money and put a lower mileage 4.6 in it (this one has 64k) then it has the perfect chassis to build on. So will see. Problem is i dont have the cash to even think about something like that atm.