I'd suggest not running that engine again until you find the culprit. It would be a good idea to check the vacuum pump, if it grenades it can take your engine with it. Check the driven accessories (water pump, alternator, A/C, P/S pump) for movement or ruined bearings. Look to see if the crank pulley is loose, there was a thread recently here about one that worked loose.

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Current stable:
1995 E320 149K (Nancy)
1983 500SL 120K (SLoL)

Black Sheep:
1985 524TD 167K (TotalDumpster™)

Gone but not forgotten:
1986 300SDL (RIP)
1991 350SD
1991 560SEL
1990 560SEL
1986 500SEL Euro (Rusted to nothing at 47K!)