Okay I have some pictures. It does not look too good to me. But before we get there. Please note that I've never taken an engine apart before. So you will see some coolant in the cylinders. I was not aware that when I pulled the heads it would drain all over the place. When I watch shows on tv where they take these apart they must edit out the draining of the radiator.
I'll take suggestions on where to go from here. I"m assuming it needs to be pulled. If thats the case, rebuild this one? Order a crate engine? I don't have a ton of money for this as I just bought and furnished a house which pulled my reserve cash that I had. So I may have to let it sit for the winter and save up to have it back on the road in the spring/summer.
Anyways now to the pictures.
Number 8 - I see some pitting on the piston
Number 6 - the culprit based on the busted spark plug. The metal pieces are still in there. right were we suspected.
Number 4 - again some pitting in the cylinder
Number 2 - Can't see in the picture - but it appears to be a nice dig in the cylinder wall.