Toyota Repair: Engine knocking, auto tranny, rod bearings


Question
Thanks for checking out my question. I have a corolla, and I will admit that i drove it like i stole it. Anyways, its an automatic, and the tranny stopped working in anything except 2nd. So i put it in 2nd and kept driving around for about a month. Then, one day, I had to use the freeway, and I was redlining the engine the entire time for about 20 minutes each way. After that, the engine would make a clunking noise at about 3000 rpm, but nothing higher nothing less. Now, whenever I start the car, it barely has the power to idle, it makes the knocking sound all of the time, and it barely has any power at all, finally i cant drive it any more. I would like to repair the entire vehicle myself, and i got a used auto tranny from the junkyard, but first i want to get the engine right again. Do you think its the connecting rod on one of the pistons? It makes a knocking sound, fairly loud, but it runs, and if i really push it, it will rev as high as it can. I thought if a rod was out, the engine wouldnt even run at all. Please give me some advice and things to look for, as i am planning to take it apart and find the root of the problem, but would like to know what i am looking for first. Thanks!

Answer
The best way to go about finding out what's wrong with the engine is to do as you said, take it apart and fine out what the problem is, at this point it's irrelevant what it might be, because it is a major problem and the engine has to come apart anyway, have you thought about just getting a used engine it may save you some time and money.
To answer your question about if the rod was out it wouldn't run: If the rod bearings are failing they will make noise until one of connecting rods finally breaks from the lack of lubrication and the heat generated and it will come apart and usually go through the block and make a hole in the block.