Hi Patzerman,
Yes, the symptoms described seems to indicate a failed timing belt.
Remove/loosen the upper timing belt cover and watch the camshaft pulley movement while cranking the engine. If they fail to turn, the belt should be bad.
This is an interference engine and the damage might be substantial, requiring removal of cylinder head to repair/ replace bent valves etc.
The dealer would be the best option as they have the expertise and equipment for repairs. The only setback would be the labor rate and other charges.
If you plan to send to a non dealer shop, you have to check their reputation and capabilities. Some might not have a good name and some might not have the expertise. One of the best techniques I recommend is to check with your local parts stores. Ask which shop they would recommend for this job and if a few shops gives the same answer, it should be safe to follow their recommendation.
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Sunday, May 3rd, 2009 AT 1:37 AM