I inspected this motor personally and cylinder 1's rod bearing is toast. The crankshaft will more than likely need repair, as there were burn marks on the rod and metal shrapnel in the oil pan. Also, the oil was beyond black and was WAY heavier then the oil that should've been in the motor.
OP stated the motor had "slight" rod knock at higher rpms, which would be totally false based on the results. Not crapping on the OP's thread, however I don't want anyone to get shafted on this motor.