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Not ragging on your mechanic, but a pointy stethoscope would have isolated the problem top or bottom fairly quickly. Maybe noisy lifters were throwing him off??Hope he didn't burn up too much time diagnosing.
Without knowing the exact particulars, the motor will probably have to come out. Here's why:
Most motors do not have enough clearance to remove the piston/rod through the crank side because the crank registers for the crank bearings/journals are in the way. Typically, motors are assembled with the pistons slipped in from the head side. That means the head will have to come off, which means the intake manifold and the exhaust will have to come off too, which means coolant hoses, draining coolant etc... Then there are issues of how the cams are driven (chains and or balance shafts?). Pulleys/damper on one end and flex plate/clutch at the other will be hanging up the crank so that must be addressed. The mechanic will have to monkey also with front cover, tranny, and driveline. Basically it will require doing everything just short of pulling the motor, only it will be a pain in the arse working around sub systems instead of having them right out in the open.
Another drawback is cleanliness and thoroughness will be marginal at best doing internal motor work with motor in car. So much easier with motor out of car.
If it is JUST a spun rod bearing that is not badly chewed up, a competent machine shop can fix it, install oversized bearings and turn the crank for a few hundred dollars. But you don't really know how much metal shavings circulated in the oil waiting to eat up other parts. Thus the slippery slope, a complete tear down/assembly $$$ might as well get a salvage motor, and since labor is $$$ super sizing up to crate motor with warranty sounds pretty good.
Tough call. Cost wise I think it would be ~3k min for a pro to do it. Depends on how much your dad likes the car and how much longer he wants to keep it I suppose.
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