'threw a rod' can mean alot of things...... with the bad engine id offer less than that, but im sure that hes willing to negotiate. ugly wheels though. blech. all in all i say yes. try to get it for 1500 or less.
That looks like a pretty good car in the picture though. Rust never sleeps so I would see it in person, if you can. The engine problem isn't bad. If I was buying it, I would probably get it. I would check the underside of the car also. Are those the plastic hubcaps you can buy at an autoparts store? Even if they are rims, THEY ARE DAMN UGLY. Hope you get that car. Good luck