First figure out what's wrong. But I can tell you which is easiest and hardest if the motor is toast.
Easiest to Hardest:
1. Sell: Give Andre at FatFab a call (951) 765-7224 and see what he would be willing to buy it for.
he's pretty good with re-build of basket cases -- ASSUMING the body and running gear is in
good condition .
2. Replace: Easier than rebuild but you will be hard pressed to find a motor ready to drop in. Someone
on the Forum might shock us and reply with a "I have one".
3. Rebuild: All depends on what's busted. A Top end rebuild is far easier than a complete overhaul. To
be specific Top end is pistons/rings/cylinders and seals. That job has it's tricks and techniques
and not simple, but done with engine in place and with some experience can be "talked" through
the procedure. More like a Harley or Porche. A complete rebuild you have to pull the motor, crank,
Cam, bearings and may have to find a shop that knows how to deal with mills like this if there's any
machining required. I don't know of anyone in your area that you could take the rig to for a rebuild
other than Fatfab in TX or Goatwerks in SoCal. Worth a call to both to discuss. Now, as Paul has
pointed out if the Oil pump it's easy.
4. Motor replace: Few, if anyone, has been successful replacing this motor with anything else. IMHO go to #1
above if you get the urge for the #4
If it were me, I'd at least get deeper into root-cause then decide on which above. Try to identify WTF those
bits and pieces are, get an Borescope up into the drain hole and see what you can see. Drop the pan, dig deeper.
It's still a mystery that clutch disengagement allows you to turn the crank -- maybe that was a red Herring and
a coincidence. Perhaps when you tried the disengage trick, just at that time, what was wedging the motor
came free, then more fell in place. It's very odd. I would also spend some time trying to see if there is also a
tranny problem or not. As bad as the metal bits and pieces look, maybe you will get lucky and that's oil pump
frag, and easy to fix. But what about that tranny?