Just a follow up
 

Its been a while since my last post, however i recently got done pulling and taking my 7mge apart. The block, head, and crank have been taken to the machine shop to be checked for cracks and warps. Anyway turns out the problem was she got too hot and the crank must have warped (signaling the rainbow discoloration on it) and my bearings were spun out pretty bad. yes so metal pieces in the cooling paths through block.....mmm not so good. Lets cross our fingers for good luck :bigthumb:

It's not uncommon for the crank to have some discoloring from the original tempering process, but not so much on the ground bearing surface. Still you could have a hardness test done to see if it's annealed or not and get it measured for straightness. I bet that at the worst case you're looking at a regrind.