I recently bought a 2.8L and just tore the pan off yesterday to check out the bottom end. I noticed, literally, a handful of metal shavings in the pan and various other metal fragements, some rather large, about pea sized.
So, I grab on to the crank pulley and turn back and forth. The motor responds with this metallic sounding click, click. I grab hold of a connecting and can move it a considerable amount by hand. Now, I'm no 60* V6 expert, but I feel confident that the bearing clearances should not be clearly noticeable by sight alone.

So, to be sure: on a good engine, if a person was to turn the crank back and forth, it should sound smooth, right? No awful click/tap noises from huge clearances?

If the bearings are shot as I believe, would a simple repacement of all bearings allow this engine to live again?

 

Yes and no.

You can just change the bearings if that all you can afford. It can / could get you by for a few more years if you keep it in mind.

I know a guy who did that to an old ford straight 6 with hi miles.
He didn't have much if any cash but replaced the bottom end bearings and put 2 new piston in it and it did run much better for a few years. He didn't have anything checked or machined, just slapped the parts in. Cost him less then $100 to boot.

Its the old back yard way of fixing things but might be your only option if you don't have much money.

Sort of like putting fix a flat in a tire. it will work for a while but your on borrowered time.

oxiderush has an engine to sell.

 

I'd check the current clearances... no, it should NOT be that loose. Yes, you can replace them, but you still need to plastigauge them, at the very least, to see how tight you've got them.

You also might need new thrust washers.

 

Hope ya didn't pay much for that engine.
I wouldn't trust it to install, as is sounds, now.
IF from wrecking yard, see if it can be returned for better subject.

 

Think I missed the part where you said you just bought it.

I would return the sucker with a right hook.