Your compressor shouldn't squeal, especially when it's not on and the magnetic clutch is disengaged. It's pulley should be free spinning unless power is going to the clutch, so it sounds like you may have a bad clutch on that compressor. Never had to replace one before, so I'm uncertain how much that'll run you.
Glad you found the trouble with your timing belt, hope it was just a case of age and wear.
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