Rep Power: 0

A friend of mine has a 2001 civic with a D17A2 engine and 181K miles all OEM no mods. It started missing on him and then immediately died and would not start. He had it towed to the nearest shop and they diagnosed it as a timing belt and quoted him a price of $1,500 to replace it. I told him that seemed very high and I would take a look at it for him. I went ahead and removed the covers and found that the belt had not broken but was missing 13 teeth. With the crank at TDC the cam was in the 10 o'clock position. So the belt had slipped. I hand cranked the engine several times and it was not locked up and rotated ok.
I followed reddawnmans post for replacing the timing belt. It was very detailed and made the job easier. Everything went smoothly and I triple checked TDC and belt alignment. After putting everything together the engine cranks over but acted like it had no compression. I checked compression on all cylinders and got nothing. I actually thought my gauge was broken but that is not the case.
Is it possible that it bent at least a valve in each cylinder and is that is why it has no compression? Any and all ideas would be greatly appreciated.

 
Rep Power: 203

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Rep Power: 312

Quite possibly internal damage from the slipping. If the car actually died the timing belt was out far enough to do damage. Generally if the timing is out just a little bit it will run rough. You may need to remove the head to see for physical damage inside, or like you said get a second opinion on the compression check.

 
Rep Power: 220

It's time to pull the head and replace the valves.

 
Rep Power: 0

Do you think the best approach would be to pull the head do a visual check and if not to bad replace the valves or because it has 181,000 miles just replace it with a low mileage used motor? I am seeing them locally on car-part for around $650.