Generally speaking a bearing get's spun due to lack of lubrication. It will seize to the crank journal and spin the bearing in the bearing journal or rod journal, depending on which bearings suffer lubrication loss. It could have been caused by the oil level being too low or by a clogged oil port. If it tossed a rod through the block then yeah, oil is going to leak out of the engine and decrease the oil level making it appear it was low when in fact it could have been ok. It's hard to tell for sure without tearing into it myself. Good luck man, I hope it all works out for you for the better.
EDIT: BTW, did you ever notice the oil pressure being a bit lower or higher than normal prior to the catastrophic event?
04‘ SVTF #204 of 1978
SVT Squad #66
Understeer scares the driver, oversteer scares the passenger.
Last edited by jaykirs; 07-06-2006 at 12:50 PM.