Because you have rod knock he suggested scrapping it? wow.. sure you might be better off finding someones pulled engine (long block is all you need) and having that rebuilt, and saving yours for craigslist or save it for another buildable core.
If its not your daily driver, then pull the motor, throw it on an engine stand and pull it apart.. look at your rod bearings and see how bad they are.. call around town and see how much it would be to have the block machined, and new OE parts.. a 30 over bore is the typical rebuild, with new pistons/rings, have the rods checked, all new bearings, have the crank machined.. if they do head work have that serviced as well..
Then if you have the tools, ie a ring compressor and a torque wrench plus the internet (which i think you have
) then throw it all back together yourself and save some cash on the assembly of it