Help please, cars messed up

[El_Stition]

Hello again. I let someone borrow my car, an 85' mustang. While they were driving down I-5, they let out the clutch, and said the car felt like it didn't have the acceleration it should have. Then the power slowly went out. I took the battery to midas, and when they put it on the machine, it started smoking. So I replaced it. After it wouldn't start, I checked for spark. None. I removed the distributor cap, and it looked like the distributor had chewed everything inside of it, including the ICM. So I replaced that, and have spark. Now when I try to start it (and it seems like I have the timing right), it turns over, but never fully starts. The hayness manual says I should look for these timing marks through the access hole, but I don't seem to have them. I've got the pin that holds the timing tension spring in place. And smoke comes out of the valve cover. I need help please. Could the timing belt have skipped teeth? It looks like it's in the right position to me.