YOU SHOULD have been running some of that 10$ a quart SYN stuff .....you know that stuff that some claim you could drain the oil and run it for miles WITH OUT any oil ..... ...some of those claims they make ....
BUMMER about your prob though ...seriously. I also agree .. the motor should come out to be safe.
GOOD luck ...It could only need new bearings and maybe a crank polish.
...some of those claims they make .... 
