if you take off the valve cover, u will see the problem. if you set up the timing correct, as u said u did, then what u should be seeing under the valve coveris a bunch of bent valves. that #2 cyl. is the only one with good valves. with the cover off crank the engine and take a good look. the rockers r off their rockers, right? u might b able to push them back on , but believe me they 're toast u can buy a remanufactured head, if u want to spend the $. thyose engines have zero tolerence valve clearences. the belt breaks or skips a few teeth, and the top of your valves get introduced to the top of your pistons, not a good thing.....scrap it. after u pull the heads, the tops of some of the pistons might have cute little holes in them. sorry to give u my thoughts on what happened. but thats what it sounds to me
