The third pic is of the the valve cover. I found an outer race of a roller bearing up there when I removed it.

I will be pulling the Vac pump today to give it a look.

This car had been passed around to bunch of the high school boys out in the country, then parked on someones property. Before that, it would appear someone was taking good care of it. The kid I got it from didn't know much about cars, or its history. He only said it ran, but the tranny wouldn't down shift. I did find the vac lines for the transmission mostly missing, and the rest leaky and routed incorrectly. It was so cheap and the body I wanted I wasn't going to pass it up! Hopefully it doesn't mean a new engine.

Edit: I could see this being from an older failure. The oil pan was bent in a way that these chucks couldn't have drained out of the plug, and were deep in a thick sludge at the bottom of the pan. When I first drained the oil I didn't notice any metallic powder in the oil.