Pully bearing/pully was shot and it chewed up the timing belt and skipped multiple teeth on the belt (6 if I recall correctly). I stuck an old/spare tbelt and idler pulley on the engine, put it in time and did a compression check and found 2 cylinders with zero compression. I also did a leak down test and got 100% loss. My conclusion was bent valves but I didn't tear it down to inspect. Hopefully it works out for you - it looks like a nice build. Did you do a leak down test or compression test when you got the car and if you did - what were your results?