Well......I do believe that you have found the source of your engine issue! Unfortunately, this means that you have metal circulating throughout the entire oiling system......crank and rod bearings will show wear from this. Pull your oil filter and cut it open to see how much metal is in it also.
This totally sucks for sure. As Mitch said, disassemble the head and post pictures of the parts and their orientation as you remove them. I don't know where you are located, but if you were close to me (Gainesville, FL.) I would be willing to help you with the process. I know these engines well, and have rebuilt a few of them over the years.
I feel for you buddy! I did get a chuckle from the Rod Stewart song comparison!