Sounds ominous. Metallic clanking noises are not part of the typical Diesel symphony you get hooked on when you drive these machines.

Does it still turn over with the starter? I get the same peculiar notation from my wife. Cranking and turning over are the same thing to me, while my wife has the impression turning over means it is starting or has started or something meaning the starter motor function was ok, and the next step happened or didn't.

If you threw a rod the engine is likely toast. Not a common event in these cars as far as I know. I would start looking for a replacement engine if the rest of the car is mechanically and cosmetically in good shape. A fresher engine can be found at a variety of rebuilding and refurbishing places, and we recently saw a very nice 240D engine, still in the factory crating go for relative peanuts on EBay. Jim

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Own:
1986 Euro 190E 2.3-16 (291,000 miles),
1998 E300D TurboDiesel, 231,000 miles -purchased with 45,000,
1988 300E 5-speed 252,000 miles,
1983 240D 4-speed, purchased w/136,000, now with 222,000 miles.
2009 ML320CDI Bluetec, 89,000 miles

Owned:
1971 220D (250,000 miles plus, sold to father-in-law),
1975 240D (245,000 miles - died of body rot),
1991 350SD (176,560 miles, weakest Benz I have owned),
1999 C230 Sport (45,400 miles),
1982 240D (321,000 miles, put to sleep)