It definitely sounds like a timing chain issue to me. The cam shaft position sensor would be unhappy because the cam isn't moving when the engine is being tuned over. Normally the best course of action when you have a failed chain is to put a whole new motor in. Just the parts to replace the timing chain is around 700-800 bucks not to mention you are going to have damaged valves and pistons to deal with. You can get a low mileage engine for less than 1000 bucks pretty easily.