I hope it's not the timing belt, because I want to believe that these are non-interference engines, and it sounds like what has happened is somewhat more catastrophic than what would happen on a non-interference engine if the timing belt broke.  But the timing belt is really easy to check.  This picture is of a 1996 Zetec, but it should be very much the same as your friend's.

Zetec Timing Belt Cover

  The green arrow indicates the upper timing belt cover, and the two red arrows point to the two bolts that hold it on.  Remove those bolts, and the cover comes off.  You have to wrestle it around that metal tube, but it's not as hard as it seems.
 

Zetec Timing Belt

  Here we see the cover removed, exposing the timing belt and the camshaft sprockets.  Once you get to this point, it will be obvious whether or not the timing belt is broken.

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Moonlight Blue 1996 Mercury Mystique GS , Zetec engine, ATX.  No mods. (Well, OK, one mod.  Before I got rid of my previous car, a 1994 Tempo, I swapped radios.  I liked the Tempo's radio better.  That counts as a mod, doesn't it?  I also kept one of my Tempo's wheels to use as a spare.  I hate those stupid ?compact? spares that come with modern cars.  Does this count as a mod?  If so, I guess I have two mods.  Replaced burned/melted blower switch and connector on 19 February 2002 with a 1P3T toggle switch from Marvac and a Molex connector from Rat Shack; I guess this now makes three mods.)