Think I just threw ANOTHER rod in my NEW 240....
 

This is like another nightmare all over again. I just got this 91 240 not too long ago and it's doing almost the same exact thing my old 240 did. My old 240 gradually had a real bad knock in the motor that got worse and worse until I could feel it in the pedal, then I lost power, and finally it threw the rod through the bottom of the motor. Now, I was just coming home from a meeting at work and I noticed I was losing power. I was thinking, "Wow, that's weird.... maybe it's just me imagening the car is getting slower though". But then I took the next exit not but a few seconds after and I noticed my steering was very stiff.... I was like "ohhhhh shi* now I know something is wrong" Then I looked at my check engine light and it was ON.... So I pulled over on the highway and sat for a few seconds after turning the car off, then I turned it back on and I heard what sounded like metal rubbing against metal, but it sounded like it was coming from behind me like in the exhaust. So I thought maybe I can get off easy and it's something with the tranny or something. So the car started to die and I just shut it off. Eventually a cop pulled up behind me (ironically the same one who pulled me over just a couple weeks ago) and he helped me push it into the grass so I have 24 hours to decide what to do. I started it up for a split second for him to hear it and then it sounded like it was coming from the motor. Now, I just got back home from a friend bringing me back, and I've got to decide what to do. I remember replacing a rod from my old 240 would be like 400 bucks assuming the block isn't all banged to hell, or the piston. That would damn near break my poor ***, plus I got to consider tow fee's. What I'm really concerned about is how bad is the damage, what am I in for.... I remember when I threw a rod it didn't effect the steering, so that's why it's leading me to believe it might be something else. Either way, I need to get it off the highway before 24 hours is up and I have 3 days off from work, thank god haha. Anyway, let me know what you guys think.

If your steering wheel was stiff, and the check engine light was on, that doesn't exactly sound like a screwed up rod. What it sounds like to me is you spun the key that holds the crank pulley in its right place. If you spin that the crank turns, but the pulley won't. NO power steering, no alt, no water pump. So you should take a look at that. I am not sure how much those keys cost, but I wouldn't think to much. Just start the motor after charging the battery. If the motor fires, but nothing turns on the front, then you have your answer.
A rod is a very distictive sound/feeling. You can't mistake it.

I just got back from towing it to a mechanic, he listened to it for 3 seconds and said it was a loose rod. It sounds HORRIBLE and he said the crank was bouncing back and forth or something which means it has a loose rod. Looks like I'm completely f'd over. Hopefully I can find another car before my days off end.

The reason I posted that earlier is you didn't specify that you heard a "knock". Generally knocking motors don't give a check engine light. With a check engine light you could have lost some oil pressure which could have caused the rod to go.