I took it to a toyota dealer - they pulled the motor out of the car, it has destroyed the big end bearing on No.1 Piston, and in doing so, damaged the rod, crank and main caps. Apparently the bores are ok. It is out of factory warranty 3yr/100000km) but the dealer is putting in an out of warranty claim on toyota (as the car only has 68000kms on it) to see if they can get the cost of fixing it paid by them.
I have been told to fix they have to replace the entire short motor (it's cheaper than buying a crank, caps, rods and assembling it) and that is going to cost $3500 (ballpark). The head is apparently ok...thankgod. I'm going to go and have a look at it tomorrow - If I can I'll take some pics.