[dsramprat]

It sounds like you might have jumped a few teeth on the timing belt, or it is just old and the teeth are breaking off. As far as the overheating, aluminum cylinder heads do not like be too hot. You have probably warped the head. This will cause a lack of compression because now the cylinders are not completely sealed anymore.

They are not an interference engine, so you should not have any damage from that, but to fix the warpage, you are gonna have to pull the head off anyway to have it shaved, so you can inspect the valves and the pistons while it is off. As for good step by step instructions, you can pick up a Haynes or Chilton manual from the local parts house.