Lost power and died, have 2 smashed spark plugs, HELP!

[stallion08]

Shes a 2001 9-3 SE CONV Automatic 2.0T

Last weekend while driving home it lost power, to the point it flat died going down the highway. I THINK it made a "pop" sound just before it died.

I've never tore into the SAAB before, only had her for a year.
Being mechanicaly inclined myself I ***umed it was the timing belt due to the alleged "pop"(90K miles) I had it towed home and began tearing down the top of the motor.
I discovered 2 things
1) Its a timing CHAIN and its fine so it wasnt a timing issue
2) The spark plugs are CENTRAL located over the TOP CENTER of the piston (its a dual overhead cam engine) plug #3 and #4 were closed at the electrode as if something came in contact with them (which i believe could ONLY be a piston, RIGHT???). With the plugs out I had my kid crank the engine over while I looked a the tops of the pistons with a flashlight, all looks well. I regaped/installed the plugs, cranked it over again, and removed them to find they were NOT SMASHED. I reinstalled everything, still no start.

Also the Engine lamp was FLASHING prior to it dying out, and over the last month under hard acceleration it has been taking off hard, then letting up, then taking off again as if your feathering the pedal, but it does it with it to the floor.

Eternally gratefull for ANY ideas.
Jimmy Wessel

[Roto]

sounds like detonation to me...

[stallion08]

NEW INFO!!
No compression cyl 2,3 and 4 60psi in 1. pistons look ok.
Anyone know about the possibility of bent valves due to maybe a cam key shearing off? Although they look intact and fine. Im really at a loss here.