I need some advice/opinions here. I parked my montero over a year ago due to feeling a new vibration when accelerating, hearing a new but very faint knocking sound, and the engine sounding...hmm...louder in the cab(not an exhaust leak). I was convinced the engine was on it's way out but I've been known to overexaggerate when I suspect there's a new symptom. I changed the oil about six months ago or so and found some shiny bits in the pan. Well, good times never last and now I need to daily this montero sport again. Give it to me straight up. Is this engine toast? If it is, I may be able to replace the rod and main bearings with the engine still in the vehicle but it will not be an easy task and finding a place to do it will be tricky. (I live in an apartment) I've gotten quotes from mechanics anywhere from 3K to 6K for an engine replacement. Nobody wants to repair anymore, just replace.

I've spoilered the images due to their size. Also, the oil seems milky because it was sitting for about a year before I did this oil change and collected some condensation.

 

You're correct, those are likely bits from the rod bearings. The good thing - there are very few of them, which means it is in a very early stages of failure. That means it is very likely that you can get away with just replacing the bearings to get back on the road.
You're right - nobody wants to repair things any more. It's sad but true.