I tore the engine down last Friday. The cylinder closest to the back of the engine is the bad one. Now that I think of it, it's probably #3. Either way my options are: rebuild the bottom end or get a reman engine. So far from what I have found, rebuilding the engine will be far less expensive. I guess I will have to tear down the rest of the engine and price out a gasket kit and whatever else it may need. However, I really don't have a shop to do this in; I was hoping a reman would have been a bit more affordable. I could pull the engine and have it rebuilt, but I am willing to bet the labor will probably put us close to the reman price.
I may just have to pull it and rebuild it in the garage at my house. Yippee..
In case your wondering, the problem with the engine was that it had a terrible clanking noise; they thought it was valve train. Ya right, it's way to loud to be a ticking valve. I pulled the head, rotated the engine, everything looked ok other than I could see visually that #3 was getting coolant (it was clean). Pushed the top of the clean piston and it dropped about 1/2 inch. So my guess is the wrist pin is broke, or maybe the connecting rod broke/ came loose. The RTV probably sat long enough to accumulate enough coolent in the cylinder to cause hydro lock, and itstead of locking it broke.