It is official, rods are toast. Now rebuilders
Expect to have to have some/all valve guides replaced and some of the valves replaced too. I would ask for the cam and lifters to be examined before assuming it needs replacing. If it is good, keep them; spend the $$ on the valves and guides. Don't get a high volume oil pump; the pump gear is a bit stressed as it is. And I would ask Doug Dutra (Doctor Dodge on
www.slantsix.org) to blueprint a pump for me rather than buy a standard one.
EngineTech has decent kits for the first line of parts. Perhaps the gaskets too; I like the Felpro sets.
Have the radiator cleaned and checked too.