I would definately drop the oil pan and check out the bearings, i bought two different engines for another car i have here, and both of them had spun or really messed up rod bearings, the dude told me it ran when they pulled it and was quiet, and i said yea it was quiet, thats because it had 10 qts of oil in it.
But definately tear as much off of it as you can and do a very good inspection of components.
If all looks good, do as mentioned already, i would put in new oil, cheap stuff for the first few times, run it for awhile, drop it and the filter, and replace it again, then drive with that for a bit, and once again replace the oil, with good stuff, then change out the oil frequently, but less and less as the oil starts looking better.
With my current motor, i change my oil at 2500 miles, or whenever it starts to get "dirty lookin"
214,000 miles too.