A picture tells a thousand words dude. I'm thinking the water pump bearings have collapsed and its thrown the belt.
That theory explains the major grinding sound for a split second then nothing. Bearings gave way. It doesn't explain why the engine died though, should have kept running.
A new pump is $80 or so plus fitting. But when you do the pump, you should really do the timing belt and idlers aswell. A timing kit is around $250 - $300 IIRC plus fitting.
There would be a good $400 in labour too. The reason you do the timing belt at the same time as the pump, as the timing belt has to be removed to access the pump. So you do them both, instead of 6 months later spending another $400 in labour to change the belt.