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Hey Trips, like Fredk said, check to make sure it's in time by putting the crank pulley @ 0 degrees, then check the cam gear and look for the "dot". It should be at the very top-centered.
If you have alot of slop in the chain, it's finished. Either the tensioner broke or the guides broke. It's time to do a timing chain replacement, before the chain cuts a hole through the cover and wipes out the engine. There's a guy on Ebay that sells timing kits with the steel driver's side guide for around $55 or so. He goes by the name Engnbldr or something like that. I got one of his kits and it was well stocked with whatever I needed.
I would stop driving the vehicle till it can be fixed. Have you priced 22re longblocks lately??
As far as bending valves, I don't know if the engine is an "interference fit" engine, so I can't answer that. It's definately time to park it though.....
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