I have a '97 Civic with around 205k miles. I recently put a new header on, took the muffler off, along with a resistor in the air intake sensor. The vehicle was fun to drive for a few weeks, then fairly suddenly it was losing power and actually shutting off while driving. The engine (D16y8) was rattling loudly and upon removing the oil pan, I discovered chunks of metal inside. There was also some free play in the 3rd connecting rod. The cylinders look okay, the crank turns and the head seems to be in good shape as well.

At this point, I'm trying to weigh out my options as to whats the cheapest way to go, as far as the possibility of rebuilding versus a swap. I have aquired another engine that needs some work, a D15b7. The crank assembly on this one is good, so I was pondering the possibility of putting the head from the D16Y8 on this one. Would this work, and how much work would it be? At this point, I just need my car to go. I'll do the better engine later.

Sounds like you spun a bearing. Yes you can put your head on that block. It's called a mini-me swap. Check it out (http://honda-tech.com/zerothread?id=735196).