I didn't see the first question, but if the aux belt has caught in the timing belt, that belt would have been whisked off, upsetting the valve timing and possibly causing the valves to collide with the pistons. A garage would replace both belts, and slowly turn the engine by hand, noticing for any obstruction. They would then do a compression test to see if there is any likely damage. It sounds like you have a big job on here, and a replacement engine is probably likely.
John
March 2009