My oil filter does not look good.

To tell I should pull the distributor and stick a screw driver down into the shaft and see if it will wobble correct?
That is what I would do first.. but any metal in the filter has gone through the pump first, so the bottom had to come off the inspect the pump..... the thoughts expressed of a full teardown are wise. It sounds like the engine is basically OK at this point, so I would try to save what I could. Don't run it anymore, IMHO.