First off, I'll make a long story short. I got another vibe base model same color as mine current vibe at a auction and it was in the non-running category, I spent 20 mins on it before the auction and got it running. (I was thinking having my own parts car) It has a very loud knocking sound coming from the engine. Timing chain seems to be in time and the engine idles perfectly, compression test is 120psi, 130psi, 150psi, and 130psi, and I removed the oil pan and found small and large metal flakes in the oil (some the size of a quarter). There is a decent amount of sludge built up in the engine including inside the value cover. The knocking sound does not change when you remove the spark plug wires while running. Also 211,376 miles on the odometer.
My question is: What is the most likely problem? Is it worth fixing the problem to get the car is good running shape again?
Total amount into the car is $350 so far and the front end bummer covers and hood will need to been replaced since it has some damage to it.
Thanks for your input.