Had exactly the same problem. The camshaft sprocket was out of position. When you disconnect the camshaft sensor it will start, but will run in "limp home" mode, max out arount 3,000 RPM. Camshaft sprockets cost about a grand a pop plus the labour, but it beats the hell out of replacing the whole engine. Make sure you test compression though. Chances are it was running low on oil that caused the problem in the first place and there may be other damage.
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