Originally Posted by AJatx

After assembling everything together and firing it up, the engine started right away and then died (CEL pointed to Idle Control and the connector wasn't seated all the way). After re-seating the idle air control valve, the engine is rock solid at 800rpm.
Everything is running smooth so far.

The failure analysis:
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Obviously the idler pulley #2 failed. Not exactly sure why it failed, but maybe it's a good idea to replace it during a timing belt replacement. There's a reason why the local dealers stock this part.

The pulley started to develop more friction after the seal fell out since there are no spacers to keep the ball bearings in the proper positions. It's enough to catch on the belt a little to cause the heat spots on the timing belt. At one point, it was good enough to stop the belt while the crank kept spinning. So, the cams stayed synchronized to each other since they are driven by the crank (source) while the crank slipped out of synch.

Prologue:
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The failure occurrence is coincidental to running the fuel tank on empty. I knew it had a tad bit more gas since I have run very low on "E" plenty of times.
Anyhow, it is a tedious process but very fulfilling when you resolve the issue.

Thanks for many recommendations and experiences. I took the long route of checking the cheapest stuff, but ultimately it is timing related. It takes longer to logically check everything (spark, fuel, timing, etc).

Rollin' again,
J