2000 Volkswagen Jetta Engine quit while driving

Engine Mechanical problem
2000 Volkswagen Jetta 4 cyl Two Wheel Drive Manual 106K miles

My daughter was driving to work when the car just quit. I towed it home. I tried to start it but the engine will not turn over. The starter turns, but apparently does not engage the flywheel. This seems like the starter selinoid is at fault, except the car was running and moving down the road when it quit. If the car had been shut off previously and when she tried to start it, it did not start, I would definitely be thinking seliniod. I know the engine is not turning because I have removed the top cover over the timing belt and marked the belt. The belt does not move from its original position when cranking the engine. The timing belt looks to be in good condition. No teeth missing and it is completely intact. I have tried jumping the battery with one from my boat and no change. I see 12+ volts accross the battery and everything electrical in the car seems to work. I charged the battery in the car since I understand from the manual that if you disconnect the battery several settings necessary for the car to operate correctly will dissappear. The starter will still not engage the flywheel. The battery did accept a charge, so I am relatively sure it is not at fault. I also checked the ODB readings and found P1337, which is a faulty CAM position sensor. I have ordered a sensor and hope to be able to replace it by the weekend. I don't have a problem changing the starter selinoid, but I am thinking that there might be a different problem masking itself as a failed selinoid, since the car just quit while under power. Is there anyone out there with a similar experience or advise? I would appreciate any help you might be able to provide.