Timing belt.. i have just replaced wires,plugs,rotor and cap. it seemed to help but the next morning idle was going up and down eraticlly.drove for about 45 mins...and a big puff of blue smoke, oil lite came on..i killed engine. had it towed to shop..they think its timing belt no compression. I opened timing belt cover while waiting for tow truck..it was there..on top...are they gonna hose me?

Timing belt probably stretched and past replacement date and that is why it ran erraticly, as you drove car last time most likely skipped notches on drive gears or broke. and opened valves at incorrect time, resulting in cloud of smoke and that is why you have no compression due to valves half open or closed by taking top cover off will only show top of belt and to determine that its slipped or broken would be difficult. so diagnosis is probably correct, oil light would come on automaticly due to light test as engine not running as you would have noticed when you normaly turn on ignition before starting car. hope this helps