Diesels are expensive, unforgiving beasts! Take no shortcuts or you'll be going back in there again!
What did the rest of the oil look like? Was is emulsified with anti freeze? If there was clean antifreeze sitting in the bottom of the pan (before the head was removed) and the rest of the oil looked normal, that means the antifreeze got in there while it was sitting, not running. When the rod bearing spun, possibly the piston pounded the bottom of the head, started the head gasket leaking, or even damaged the head, don't know how bad it got...
If the oil was emulsified with antifreeze, it was getting in the oil before the bearing failure, and probably caused the failure.
Again, test everything, assume nothing! Now would be a good time to pressure test the oil cooler, put air pressure in the oil port and submerge the whole thing in water, watch for bubbles.
I hope you have a repair manual, if not that will be the most important purchase you'll make! Somewhere in this overhaul, you'll get a machine shop involved. Don't let them assemble anything! Double check their work, measure everything yourself or have a second party do it for you! Finding a reputable machine shop is the hardest part of the whole ordeal, second only to paying for everything, and the goal is to do that only once!!!
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Today's Featured Article - Earthmaster Project Progress Just a little update on my Earthmaster......it's back from the dead! I pulled the head, and soaked the stuck valves with mystery oil overnight, re-installed the head, and bingo, the compression returned. But alas, my carb foiled me again, it would fire a second then flood out. After numerous dead ends for a replacement carb, I went to work fixing mine.I soldered new floats on the float arm, they came from an old motorcycle carb, replaced the packing on the throttle shaft with o-rings, cut new ga
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