Pieces of steel in cylinder??

If you are considering pulling it and rebuilding it, it's a 318, maybe just let it go. Go find a 5.9 magnum and swap it in. Almost everything will just bolt up, especially if you change the front end parts. Add an electric fuel pump and BAM, 14 second car :) You'd be surprised at how good of shape a magnum will be in with over 100k miles on it. Might be worth a look.

On the top of my head, you'd need ...

intake
carb
oil pan
electric fuel pump
maybe some odds and ends.

The rest should work off of your existing paper weight.