Quoted From johnzcarz:
You mean your oil looked like this?
http://www.youtube.com/watch?v=ien1V1qG1yc
Not a good sign for the bearings. But at least you know going into it. Let us know what you find – maybe post up some pics.
I have seen this before too on a newly rebuilt motor on a 302 Mustang. Almost made me cry. I felt so bad for the owner.