D16A1 DOHC...sTuMpEd!!

88' Integra RS 108,000 Miles 5speed Man...Bone Stock.
My fiance was driving it from school and halfway home she noticed the cars idle starting to lope...Mainly when she came to a stop and when taking off. She also noticed a squeeky grinding noise coming from the engine. The Highbeam, Check engine and battery indicators came on...(guage cluster) The power steering also went out!!
I checked and the squeeky/Grinding noise is coming from the Timing gears or area...I checked the ECU and I'm reading...
(1 FLASH-pause-17 Flashes) Then the 17 flashes repeat over and over. I looked up the code and it stands for VEHICLE SPEED SENSOR. My speedometer is working fine...Why would that cause squeeks and grinding sounds? Why would it cause the power steering to go crazy? I recently installed a new Dizzy...Could a faulty dizzy cause this??
Any info will help.
Thank you.
P.S.
I used the search...Nothing.
Thanx.

Powersteering shouldn't be affected by something like a distributor. I really don't know what might be wrong. Sorry.

Well when my dizzy went out about 6 months ago everything electrical went nutts!...I'm still stuck!
Thanks anyways.
-Adrien