Vteck problem. This is the Variable valve timing system. This can be triggered by low engine oil level, wiring issues and the special little filter in the system getting dirty.
Yes.
its vtec. not vteck, vtac, vtak, or vtech! cheapest route would be to drop a d16y8 in there. that's the sohc vtec engine that came in the 96-00 civic ex. if you're looking for something quicker then go with a b-series, like a dohc-vtec engine (i.e. b16a, b18c1, b18c5, b16b, etc) then you'll need all sorts of things like mounts, linkages, dif axles, ecu, and wiring to make it work.