GET A NEW MECHANIC.
no mechanic should be telling you a honda needs a new engine at 85K, that's freaking ridiculous. as someone else mentioned, what you are hearing is probably the valves, which are supposed to be adjusted every 30,000 miles or so, at least on my 91 accord. the fact that you can hear them clicking means they are already way out and doing damage to themselves, so take it to an import specialist ASAP to get that looked at.
and 6-7K miles on one oil change isn't going to harm your engine that bad. don't make a habit of it, of course, but as long as the oil level was ok, one time of going *gasp* almost as long as the recommended interval really isn't going to do that much to a honda.
but yeah, my 4-cylinder accord has 165K, and it's been through WAY rougher crap than that: one time a bad mechanic didn't torque the spark plugs right and two of them EJECTED from the cylinders and bounced away under the car. i was in a bad spot and had to drive it for a while, on two cylinders, with the other two just open to the air! (it sounded like a harley.) then the mechanic i took it to to get that fixed (it needed a valve job to fix the compression) totally messed up the whole works. the third mechanic found the timing was off, the valve lash was off (your likely problem), etc, etc, etc. That was 45,000 miles ago, and the only permanant "scar" is that it burns a little oil, probably from the work that crappy mechanic did. also, i drive this car hard, with a regular commute that includes stop-and-go, 80 MPH bursts, and an elevation change of 2000 feet and back again, each way.
so your little 85K engine that needs an oil change and the valve lash checked really isn't in bad shape, and certainly doesn't need to be replaced.
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