The Stovebolt Site Forums The Shop Area Engine Shop Rod Wear

You're not hearing connecting rod noise. It would get LOTS louder as you revved the engine up. Your oil pressure is still pretty healthy too, there's no major wear in that engine. Just another thought, but you could be hearing lifter clack or other valvetrain noise. The sound could be getting transmitted so it sounds like its coming from somewhere else. Neither of these are fatal problems.
I don't know if the 292 has hydraulic or mechanical lifters or how valve adjustment is accomplished on that engine. I'm sure someone else will chime in..