I recently purchased a '93 240 w/165k on the clock. Body is quite straight and rust-free, especially for the salty NE roads, with new Michelins and exhaust system. Reported to have a clutch cable issue and needed a hood cable. Clutch cable turned into a $700 tranny rebuild, so now I've got about $2,600 tied up in this thing. I've driven it about 1,500 miles since the rebuild (0 prior, as it would not go into 1st or 2nd). Yesterday I changed the motor mounts. They weren't that bad but what I did find was that the "weight" at the end of the clutch cable where it attaches to the fork was installed backwards and was striking the firewall under acceleration. Down off the jacks and onto the road - NO NOISE!! Went to fill up with gas and upon restart, heard a slight rapping on acceleration. By the time I got it home (6 miles), it now sounds like a diesel when increasing or decreasing the revs as well as under load, even the AC compressor. So my shadetree diagnosis is a spun rod bearing. Am I right? I probably did get on it a little in 1st gear on the way to the gas station, but nothing ridiculous.

Fix it? How much?

Replace engine with junkyard pull?

Junk it?

Thanks for your help!