I had the exact same thing happen to me, except the idler pulley stayed in place long enough to limp home. Thankfully, the chain didn't slip. I replaced the timing case without removing the head by dropping the oil pans instead of pulling the head, using the procedures described in this forum and the Bentley manual. However, it sounds like you have bent valves and need to pull the head anyways.
As for the alignment of the sprockets in relation to the camshafts, if you have the camshafts locked at TDC for cylinder 1, the arrows on the sprockets should point up, perpendicular to the mating surface of the valve cover. Check to make sure the 4 fasteners holding each sprocket onto the camshaft are centered within the slot, and you should be good to go.